At 50, many people will look to retirement and their later life plans. However, achieving these dreams can be a challenge and it can be hard to know where to start.
Express.co.uk spoke to Chioma Patrick, Associate Director and Financial Planner at Coutts.
She outlined key savings and retirement advice Britons should implement once they hit 50.
Ms Patrick said: ‘If you don’t have a retirement pot in place at this point, consider any time a good time to start a retreat.
“Tax relief is provided, and income and gains are also exempt from tax.
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As such, it’s probably a good idea to group them together – place them in one or two arrangements to ensure individuals don’t lose track.
Once a person reaches 50, they approach the age at which they can first access their pension – currently 55.
However, many people still have years before leaving the labor market, so it will be essential to ensure that the money is managed sensibly until then.
In this sense, Ms. Patrick encouraged people to review their risk profile for investments.
While high risk may have suited people in the past, there is now less time to ride the highs and lows of the market.
Therefore, moving to a lower risk profile is likely to make more sense to protect short-term retirement income.
When it comes to withdrawing a pension, there are key rules to keep in mind, otherwise Britons could face taxes or penalties.
For this reason, Ms Patrick encouraged individuals to seek advice on how to withdraw from their pension in the most tax-efficient way.
Once personal and private pensions have been arranged, Brits may want to move on to public pension.
Ms Patrick added: ‘You can decide to take the state pension or postpone it. Check that your national insurance file is complete before the legal retirement age. »
Fortunately, this can be done quite easily, using the government’s online tool.
Along the same lines, self-employed people should also check their national insurance records to see if there are any gaps.
Finally, Ms. Patrick said, assessing any outstanding debt is key before retiring.
She remarked, “Make sure a plan for repaying all debts is finalized. This should be done before retirement age.