Most of us spend our lives planning for retirement, putting away savings and making savvy investments to ensure we can continue to live the good life well into our golden years. But while putting measures in place to make that happen in your 20s is undoubtedly a wise move, the strategy that worked for you then might need some tweaking by the time you enter your 50s, and reassessing your finances in line with your current priorities is essential to ensure you continue moving in the right direction.
This is particularly true if you’re planning an early retirement; after all, it’s over the next few decades that you’ll be doing all of those things you’ve been looking forward to for so long – from travelling the world and enjoying some much-deserved relaxation, to getting some quality time in with your family. But at this stage, you’ll likely also have concerns over making the right decisions and being sure that your loved ones are going to be looked after should the unexpected occur – so how do you strike the perfect balance?
The good news is that by taking the time to do some research now, you can save a lot of unnecessary stress over the coming years, and by implementing these simple but effective tips on managing your finances, you’ll be setting yourself up for a future that’s enjoyable, as well as doing the right thing for you and your family.
Planning for your loved ones
Having a robust life insurance policy in place is one of the best ways to ensure your family will be taken care of financially should the worst occur, so if you’ve yet to take one out, then now is the time to do it. In order to find the best life insurance for over 50 age ranges, it’s important to stop and take stock of what truly matters most to you about the future of your loved ones, as this can help you to pinpoint the best possible policy for both you and them while ensuring that you aren’t spending more than you should be on a life insurance premium.
There are many options available for people over the age of 50 to choose from, so take your time and find a policy that’ll provide you with some much-needed peace of mind.
While the majority of life insurance policies require a medical examination, some companies don’t require this and instead, you may be asked a few broad questions to ascertain your current situation. In most cases, you’ll be taken on, although premiums may be higher for those with pre-existing medical conditions. And, it’s important to make sure your premium is paid regularly and without fail so that you are fully covered at all times.
It’s worth bearing in mind that no two life insurance policies are ever the same, so it’s important to do a little research into the options available to you before making any final decisions.
Planning for your retirement
The private pension age, which currently stands at 55, is due to increase to 57 by 2028. The state pension age, meanwhile, rose to 66 last year, and is due to further increase to 69 over the next 15 years.
It’s not the only dramatic change to have been made to pensions and other savings accounts like ISAs over recent years, and the ever-moving goalposts can make it difficult to keep up with the latest rules and numbers – so keeping abreast of the latest changes that might affect your longer-term plans is essential in order to optimise your retirement plan and set you up for a comfortable life.
ISAs are of particular note when it comes to planning ahead for retirement because they protect you from both income and capital gains tax on the underlying investments. This year’s ISA allowance is £20,000, so placing this amount into your account is a wise move to make the most of the benefits.
Bringing in a professional financial advisor to help ensure you have all the right measures in place is recommended, as they will have all of the required knowledge and know-how to help you make a watertight plan that will maximise your savings, help you to make some gains and ensure you have access to your retirement money as and when you need it.
The bottom line
Reaching your 50s should be about developing even closer relationships with your loved ones, reaping the rewards of a lot of hard work, and finally enjoying yourself. And, while making financial plans for your retirement may not sound particularly exciting, it will make certain that you have the necessary foundations in place to set you up for making decades of memories and having lots of fun, all without losing any sleep over financial security for you and your family.
