Hitting 50 is a milestone when it comes to retirement planning.

When you can see retirement in the not too distant future, 50 is certainly a wake-up call more than ever before.

Here are our top ten retirement planning at 50 tips which we share with clients who are set to celebrate the big ‘five oh’.

Top Ten Tips

  1. Work out what you have already
  2. Think about where you will live when you retire
  3. Think about when you with retire
  4. Work out what income you will need
  5. INVEST more now
  6. Don’t forget to consider your family
  7. Keep a track of your progress
  8. Decide if you need security or flexibility of income
  9. Make sure you are in the right investments
  10. Make sure your other finances are in order


1. Work out what you have already

If you are turning 50 start off by pulling together all the information from your pension providers and getting an up to date statement of what they have got.

2. Think about where you will live when you retire

Some people may have plans to retire to the sun, never to move, or simply to downsize. Start thinking about where you intend to live early on, as these decisions can often take a long time to come to fruition.

3. Think about when you will retire

Those aged 50 now will not receive their state pension until age 67. Many of us will not have saved enough in our pensions, meaning we will need to work until we are older compared to those retiring now.

Around a million people over-60 work part-time in the UK, working shorter hours and phasing into retirement. Employers are no longer able to force employees to retire just because they reach a certain age.

4. Work out what income you will need

The state pension provides an annual income of £8,546 in 2018/19, but for most of us this simply will not be anywhere near enough. Work out how much money you are spending now, and I mean absolutely everything. Include going on holiday as well as the household bills and mortgage repayments.

Your next job is to work out what you will spend when you have stopped working altogether. Think about what you will realistically need to live on, including all the nice things to enjoy in retirement.

5. Invest more now

The chances are that once you have done your calculations, you will find that you have a gap in your saving. Don’t be put off doing something about it as you still have time to change your retirement income.

Even paying a small amount more into a pension can make a big difference to your income in retirement.

6. Don’t forget to consider your family

If you share your finances with your wife, husband or partner, consider their pension situation as well.

It is also important to make sure that your pension schemes know who you should receive the benefits in the event of your death. Most personal pensions will allow the full value of your pensions to be paid to your nominated beneficiaries without tax if you die before age 75. After the age of 75 is somewhat more complicated and could result in a tax charge for the beneficiaries.

7. Keep a track on your progress

Taking retirement planning seriously should start at age 50 if you haven’t already. Checking your pension regularly is a good habit to get into from age 50. Most pensions can be viewed online, and you may also want to consolidate your pensions making them easier to keep track of. Make sure you are not giving up any valuable guarantees particularly on some older pension plans.

8. Decide if you need security or flexibility of income

Since April 2015 the rules about what you withdraw income from your pension has become much more flexible. You can still choose an annuity, which will provide a guaranteed income for the rest of your life, compared with the ability to draw an income directly from your pension.

Using the pension pot to buy a secure income will be the right choice for some people, particularly if they would be nervous about their investment and had little or no other secure income.

For those people who do not need a secure income, the flexibility of keeping their money invested may be attractive. You can always do a bit of both, buying an annuity to cover the retirement essentials whilst using income drawdown for other spending.

9. Make sure you are in the right investments

At this point, it is critical that your pension investments are invested in the right funds for you. Protecting what you have already built up and controlling how much risk you are exposed to is very important at this stage. You may only have 15 to 20 years before you start using your pension, so plenty of time to invest and benefit from the stock market op’s and down’s.

For example, if you have accumulated £100,000 in your pension by the age of 50, your pension fund could double or treble over the next 15 to 20 years through additional investment and growth. The first thing to do is get started and seeking professional advice may be just what you need.

10. Make sure your other finances are in order

With retirement now appearing on the horizon, it is important not to forget your other financial objectives. This could be paying off the mortgage, helping your children with university fees or other near term financial goals.

Action Call

Are you concerned about your how your plans for retirement? Not sure if you are on the right track?

Contact us to today. We can review your current situation and let you know what options are available to you.

If you would like to talk to about financial planning, please get in touch for a no-obligation meeting. Go to our website www.miadvice.co.uk and contact us via our “Get in touch” form on our home page or Contact Martin Dodd on 01902 742221.

Email us at financialplanning@miadvice.co.uk

It is advisable to take advice from a professional financial adviser when making major financial planning decisions.

Check out our other recent articles here

This article has been prepared in good faith and based on Midlands Investment Agency’s understanding of the law and interpretation thereof at the time of creation. The contents should not be regarded as specific advice and we always recommend that specific advice is sort from a qualified professional. No responsibility can be accepted by Martin Dodd or Midlands Investment Agency Ltd., for any loss that may occur by a person acting or refraining from acting on the basis of this article.