Two in five use tax year to reassess their finances

New research from Chase has found that two in five adults (39%) use the new tax year as an opportunity to reset and reassess their finances.

The data showed that over half (52%) actively use this time to think about where they’re putting their money as their ISA allowance resets.

Nearly half (44%) reset their finances because they believe the new tax year is a good time to refocus their goals and one in five (20%) aim to reignite New Year’s resolutions. Whilst two thirds (66%) of those in the higher or additional rate income tax bands (so in Chase’s research earning £50,000+ a year) use the new tax year as a chance to reset their finances.

Gen Z are the most likely (57%) to use the new tax year to reset their finances compared with less than half of Millennials (49%), a third of Gen-X (32%), and a quarter (27%) of those aged 60+.

Shaun Port, Managing Director for Savings at Chase, said “While those in higher rate tax brackets are generally using the new tax year as a reason to take a closer look at their finances, April presents an opportunity for everyone – regardless of income – to take stock, look at their goals and make sure their money is working as hard as possible for them.

“Our research findings show that consumers are clearly taking a proactive approach to their money – whether that’s thinking about their outgoings, committing to a long-term savings plan, choosing where to invest or thinking about how to make the most of their new ISA allowance. Choosing accounts that help you maximise your spending and saving power will support you in achieving your goals.

“It’s encouraging to see younger generations showing so much proactivity, suggesting that even in the most unpredictable times, this group is establishing and developing healthy money management habits.

“Reviewing your finances now and seeing how you can take small steps to make more of your money, could add up to a more positive future.”