3 ways to build financial resilience in 2026

2025 was a challenging year, marked by significant economic uncertainty. As we enter 2026, you might be concerned about how global events could affect your wealth over the next 12 months, and whether you will still be able to reach your goals.

Fortunately, one of the key benefits of having a financial plan is that you can prepare for and withstand economic turmoil, enabling you to continue working towards important life ambitions.

Read on to learn three ways to build financial resilience in 2026.

1. Review your protection needs

Protection acts as a safety net for your financial plan.

If you were suddenly unable to work due to illness or injury, your income could fall overnight, meaning you might struggle to meet your short-term expenses without dipping into your savings. In addition, you likely won’t be able to contribute to savings and investments for the future.

Consequently, your current lifestyle and ability to reach long-term goals may suffer. Depending on how long you are out of work, this could significantly harm your future financial position.

Fortunately, income protection could prevent this situation as it pays a regular income until you’re able to return to work. This means you can continue saving and investing for the future and keep your financial plan on track.

Protection is similarly beneficial if you become seriously ill or pass away. Critical illness cover and life insurance pay out a lump sum to support your family during this difficult time.

At the start of the year, you may want to review your protection to check that it’s still suitable for your current situation. For instance, if you move into a more expensive home, you might want to increase your level of life cover so that it matches your mortgage.

The same is true of your income protection policy. If your earnings increase and you enjoy a better quality of life as a result, you may need to adjust your cover to reflect your outgoings.

By regularly reviewing your protection, you can build resilience against unexpected life events such as a serious illness or death in the family.

2. Top up your emergency fund

Your emergency fund is another important protection against the unexpected. Having a healthy cash savings account means that you can pay for any surprise expenses, such as home or car repairs, without having to borrow on credit cards.

Equally, if you lose your job, you could use your emergency savings to help cover your living expenses while you find work again.

It is recommended that you keep three to six months’ worth of expenses in your emergency fund. However, you must consider the effects of inflation on your outgoings and whether your savings are still adequate.

For instance, the Bank of England (BoE) inflation calculator shows that if your outgoings were £3,000 a month in 2020, the same standard of living would cost £3,844.93 in November 2025. As a result, if you saved £9,000 expecting this to last you three months, you could have a shortfall of almost £2,500.

Checking your monthly outgoings and topping up your emergency fund will ensure that you have enough savings to remain financially secure in the face of unexpected costs.

3. Check that your investments are well-diversified

Your investment portfolio is a vital part of your financial plan as it allows you to grow your wealth, giving you more options in later life. However, global events could affect the value of your investments, and during times of turmoil, it’s easy to panic.

You are far more vulnerable to market movements if your investments are too concentrated in one area. For instance, you might put all your wealth into tech stocks, which have seen rapid growth in recent years. But if that industry were to face difficulties, you could see the value of your portfolio fall significantly.

Conversely, if you spread your investments across different industries, sectors, and geographical regions, you may see growth from some stocks while experiencing losses from others. These gains and losses may balance out, meaning you still see overall growth.

Naturally, you will always adopt some risk when investing, but by diversifying your portfolio in this way, you could protect yourself to some extent from market volatility.

Get in touch

We can help you build financial resilience in 2026.

Please contact us at hello@ardentuk.com or call or WhatsApp us on 01904 655 330. As an award-winning financial advice company with advisers included in the 2025 VouchedFor Top Rated guide, we can assure you that we’re a bona fide company providing excellent advice and high-quality service.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Note that life insurance and financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.