3 Top Financial Planning Tips for the Over 50s Market
Not only is the UK population continuing to grow, but it’s also becoming older. In 1971, the average age was 34.1 years, and this had increased to 38.8 years by the time of the 2001 census. This figure has now risen beyond 40, as life expectancy increases, and people begin to live longer.
If you’ve recently turned 50, it’s probably fair to suggest that you’ve got one eye on your retirement and the accumulation of your pension fund. The current economic climate is hardly conducive to optimising income and savings, however, so it can be difficult to achieve your financial objectives and effectively plan for the future as retirement encroaches.
In this article, we’ll offer some tips that will help you create tailored financial plans and take steps towards creating a pension fund that can sustain you in the future:
- Open your mind to new investment options
We’re all aware of traditional state and workplace pensions, but the fact remains that these funds are not guaranteed to sustain you during your retirement. So, as you grow older and progress beyond 50, it makes sense that you should open your mind and consider more progressive investment options that can optimise your wealth. Take self-invested pension plans (SIPPs), for example, which offer you access to a far broader range of asset classes and potentially higher returns regardless of the economic climate.
- Partner with an Expert Service Provider
As you consider your array of pension options, you may well find yourself unsure as to how you should proceed. In this instance, you may need to partner with an established service provider and financial planning expert like Tilney, who can review your existing earnings and saved pension funds before creating tailored savings solutions. This will also enable you to effectively manage your wealth in the future, while allowing you to execute concrete plans for the distribution of your estate when you pass.
- Do not let the economic climate restrict your plans
With inflation having peaked at 3% in October, the cost of living is beginning to spiral out of control in the UK. Similarly, real wage growth and high street savings rates have stagnated, placing a squeeze on household incomes and making it difficult to save. This can create a negative outlook among older savers, who may believe that trying to optimise and manage pension funds in the current climate is futile. This attitude is counter-productive, however, and its important that you remain positive and take proactive steps towards boosting your pension funds for the future.