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In uncertain times, one of the most empowering steps you can take is to focus on what you can control – your own finances.
The conflict in the Middle East has been the biggest single driver of financial turbulence so far in 2026 – pushing up fuel and energy costs, rattling stock markets and complicating the outlook for inflation and interest rates. Add to that the continuing uncertainty around global trade tariffs and the state of the UK economy, and it's little wonder that many people – particularly those approaching or already in retirement – are feeling unsettled.
Whilst you can't control what happens to the economy, there are things you can do to protect your money. We'll walk you through some of the best steps to take right now.
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Volatile stock markets since the start of the year have affected many investments. Pension funds with significant holdings in global equities have been directly affected by the sharp swings in oil prices triggered by the Middle East conflict, as investors try to second-guess how negotiations are progressing. Ongoing uncertainty around US tariffs has added another layer of turbulence.
And if you're approaching or in retirement, that can feel worrying. Brian Bené, chief customer officer at Octopus Money, says that after the age of 50, money stops being something you're simply building up for 'one day'. You're moving from saving and investing to drawing an income that needs to last, possibly for decades.
“The questions now are bigger and more personal: When can I stop working? How do I take an income from my savings without running out? Can I still live the life I want, even with inflation and market ups and downs? Do I need to switch strategies?”
Whatever your age, it’s important not to panic over short-term market dips and to ensure any drawdown or annuity strategy aligns with your timeline.
Bené says: “There are many options for taking money out of your pension. These include drawdown, phased withdrawals or enhanced annuities, depending on your circumstances. Consider a check-in with a financial expert, which at this stage can make a huge difference.”
Start by looking at what's coming in and what's going out. Make sure essentials such as your mortgage or rent, food, energy and household bills are prioritised before discretionary spending such as holidays or hobbies.
With petrol and diesel prices having risen sharply since the Middle East conflict began in late February – and food prices likely to follow as higher energy costs work their way through the supply chain – a refreshed budget can highlight where small cutbacks might free up cash to put towards savings or debt repayments.
If inflation is eating into your income, a refreshed budget can highlight where small cutbacks might free up cash to put towards savings or debt repayments.
Bené says a budget is your anchor when it comes to being a smart spender. If you’re still working, it helps you manage rising costs while protecting your savings. If you’re retired, it ensures you don’t overspend early and run out of money later. “Budgets aren’t static – prices change, rates shift and your goals evolve. A regular review keeps everything aligned with your life,” he adds.
Unexpected expenses, such as a boiler repair or private medical bills, are far easier to manage when you have savings set aside to fall back on – so build an emergency fund and keep this money in an easy-access savings account.
Clare Moffat, personal finance expert at Royal London, says it’s often believed that your emergency fund should cover three months’ of expenses. But the amount really depends on your circumstances.
If you are still working, you might have a mortgage so a larger fund could be needed, but you might also have insurance products which could pay out if you were unwell or couldn’t work. Some experts recommend that in retirement, you should have one to three years of expenses available, to cover unexpected emergencies such as house repairs.
Moffat adds: “If you’re retired, the amount you receive in pension will be less than you received from a salary, so covering unexpected expenses could be more difficult - but most people who are retired don’t have a mortgage. You could also have taken some tax-free cash and have that available to help with any large expenses.
“The key is to work out your day-to-day spending, allow for any potential and unexpected bills, and have the money to cover that easily accessible.”
When it comes to your investments, you may want to avoid over-concentration in any single asset type, whether that’s equities, bonds or property, to avoid putting all your eggs in one basket. With oil price movements currently driving much of the volatility in equity markets, spreading risk across different asset classes and geographies has rarely felt more important.
One way to diversify your portfolio is to look at funds that invest in a range of shares, bonds or other assets.
Another option could be money market funds – short-dated, low-risk investments designed to provide returns slightly higher than typical cash savings.
Helen Morrissey, retirement specialist at Hargreaves Lansdown, says it’s important not to take knee-jerk decisions that you may come to regret. “Switching investments can crystallise losses and rack up fees. You may be in a ‘lifestyle’ arrangement anyway, that moves you from equities into bonds the closer you get to retirement.”
It’s worth seeking advice from a financial adviser before making any major changes to your investment portfolio.
If you’re not yet at state pension age, it can be prudent to plan for if you can't work right the way up until that point. That might be because of ill health, or if you struggle to find a new role after redundancy. Healthy life expectancy in the UK has dropped two years in the past decade to just under 61 on average, although there's a lot of variation between areas in the UK, as well as between individuals.
Sarah Coles, head of personal finance at AJ Bell, says: “When you’re planning an income after finishing work, there’s every chance you’re factoring the state pension into the figures. It means it’s important to consider how you would cover any period before it was due.
“The fact that you can draw a private pension income from 55 (rising to 57) means for many people, the answer lies in revisiting pension contributions, aiming to build a pot that’s big enough for you to take a higher income in the earlier years. The earlier you start planning for this, the longer you have to fill any potential holes in your plans.
“You may also want to look into income protection insurance, which can pay out a specific sum if you have to stop work for health reasons... Income protection insurance isn’t cheap, but it can be incredibly valuable.”
If you’re thinking about moving house, downsizing or remortgaging, take time to research the type of mortgage that best suits your circumstances. The mortgage market has shifted considerably since the start of the year, with the Middle East conflict pushing inflation expectations higher and fixed-rate deals rising as a result.
Tracker mortgages are currently among the most competitive products on the market, and they typically do not carry early repayment charges – offering useful flexibility if you plan to move or overpay. However, they carry risk: if the Bank of England base rate (currently 3.75%) were to rise in response to persistent inflation, your monthly payments would increase. A fixed-rate deal can provide greater certainty, at the cost of a slightly higher rate.
If you’re remortgaging, most lenders allow you to secure a new deal up to six months in advance. This can be a good way to hedge your bets – you can lock in a deal now, while leaving the option to switch to a better product if cheaper rates become available.
Inflation rose to 3.3% in the year to March 2026, as measured by the Consumer Prices Index from the Office for National Statistics (ONS). The Bank of England has indicated that CPI is likely to remain between 3% and 3.5% through the second and third quarters of 2026, driven largely by higher energy prices, before – it is hoped – starting to ease back towards its 2% target.
When prices for everyday goods and services are increasing faster than your savings rate, the real value of your money falls.
With the Bank of England base rate currently at 3.75%, savings rates remain relatively competitive – but it pays to shop around rather than leaving cash in a low-interest account.
Kevin Brown, savings expert at Scottish Friendly, says: “Falling savings rates combined with high inflation mean cash is steadily being eroded. Savers may want to look to secure the best-paying accounts or consider long-term investments that have the potential to deliver stronger real returns.”
The Ofgem energy price cap is currently set at £1,641 a year for a typical dual-fuel household in Great Britain for the April to June 2026 quarter. While this provides some short-term protection, bills are likely to rise later in the year – particularly given that the Middle East conflict has pushed energy input costs sharply higher in recent months.
Petrol and diesel prices surged in March and the first half of April, marking the longest run of consecutive daily increases on record, before beginning to edge back slightly. Even so, prices remain elevated compared with the start of the year. If oil prices stay high, those costs are likely to feed through into household energy bills in the months ahead.
Businesses, which are not protected by the price cap, are already seeing increased bills in many cases. Use a whole-of-market comparison site to find the best energy deals available to you, and consider whether a fixed-rate tariff might offer some protection from further price rises.
Getting on top of your finances in uncertain times can feel daunting, but small, deliberate steps can make a positive difference. A financial health check helps you step back, look at the big picture and make a clear plan. It can give you confidence that you’re making the right decisions now – while protecting your future.
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