How to Maximise Your Pensions in Your 50s

People have more control than ever over their pensions and if you are looking forward to retirement, you’ll find it’s a great time to review your investments and savings to maximise your returns.  With some thorough planning alongside the professional advice of an independent Chartered financial planner – you will meet your retirement expectations.

Some questions to think about are:

  • When do you want to retire?
  • How much income do you want in retirement?
  • Do you have old pension plans that need reviewing? What are my retirement options?
  • Can I work part-time and take some of my pension?
  • How much will my State Pension be?
  • Where is my pension money invested and is it growing?
  • Can I retire early?

Once in your fifties, you often find your children have grown up and left the family home and you’re closer to paying off your mortgage in full. Also at this stage of life you may have reached – or are nearing – your maximum earnings. These all go towards making this the decade to get your pension plans thoroughly underway.

Let’s assume you’re already making pension contributions. If your disposable income rises, it’s a good time to think about increasing your pension contributions too. Many employers will match pension contributions. If your employer offers this then this helps towards maximising your pension pot. It is also wise to look into all your pensions (private and workplace schemes) and consider consolidating them into one. Many savers who’ve worked at several different companies may have a few dormant plans.

From age 55, you can access your pension pot if you wish. If you choose to do so, some options you have are to:

  • Make a few small withdrawals over a period of time, the first 25% of your pension pot is tax free or:
  • Take out a lump sum of 25% of your pension tax-free
  • Drawdown: Leave your money invested and take an income from it at a frequency that works for you
  • Use any leftover money to buy an annuity allowing you to have a regular income

If you decide on one of these options, it’s important to keep in mind that the sooner you begin to access your pension, the less you’ll have to last through your retirement as a whole.

You should also have an idea as to when you can retire from your pension plans and how much you can expect to retire on. Using a pensions calculator will give you an overview as to what you can expect from your retirement savings.

Planning your retirement can be confusing, but our financial planners have the expertise to make it simple. If you would like to arrange a meeting with a member of our experienced, professional and friendly team, contact us today on 01992 500261, or online.

This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions. Investments can go down as well as up and you may get back less than you invested.