When reaching 50, many people will be looking towards retirement and their later life plans. However, actualising these dreams can be a challenge, and it may be difficult to know where to begin.
Express.co.uk spoke to Chioma Patrick, Associate Director and Financial Planner at Coutts.
She outlined the key savings and retirement tips Britons should be putting into motion once they hit the age of 50.
Ms Patrick said: “If you do not have a pension pot in place at this point, consider that any time is a good time to start a pension.
“There is tax relief provided, and income and gains are also tax-free.
As such, it is likely to be sensible for these to be consolidated – placed into one or two arrangements to make sure individuals do not lose track.
Once a person hits 50, they are approaching the age at which they can first access their pension – currently 55.
However, many people still have years left until they actually depart the workforce, so it will be vital to ensure 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 peaks and troughs of the market.
Consequently, moving to a lower risk profile is likely to be more sensible in protecting retirement income in the short-term.
When it comes to withdrawing a pension, there are key rules to bear in mind or else Britons could face tax or penalties.
For this reason, Ms Patrick encouraged individuals to seek advice on how to draw from their pension in the most tax-efficient way.
Once personal and private pensions have been organised, Britons may wish to turn their attention to the state pension.
Ms Patrick added: “You can make a decision on taking the state pension or deferring it. Check your National Insurance record is complete prior to state pension age.”
Fortunately, this can be achieved with relative ease, by using the Government’s online tool.
In a similar sense, those who are self-employed should also check their National Insurance record to see if there are any gaps.
Finally, Ms Patrick said, evaluating any outstanding debt is key before retiring.
She remarked: “Ensure a repayment plan for any debts are finalised. This should be done prior to retirement age.”