The Five Ages of Financial Planning: 35‐50 – Onwards and Upwards

There are five ages of financial planning, and it is something to consider from the age of 18 to 35 when you are just starting out as an adult through to middle age as you continue working life. Between the ages of 35 to 50, you will have developed a better understanding of money, including what it is and what it can do.

You will have more control over your own money and be ready to consider the next stage of personal financial planning.

What financial matters might you face at this point in your life?

Although only covering 15 years, this time period is often split into two halves. It is wise, however, to have built a strong relationship with a financial planner to ensure your financial plans are as strong as they can be.

In the first half, you may continue paying a mortgage for a home as you build your family. Having both children and a mortgage means that protection is key. Not only should you consider a form of life insurance, but you should also think about income protection and critical illness protection, too.

In some cases, employers offer some form of life insurance and people often assume they are covered by this, or by the government. This isn’t always the case, so it is important that you understand the protection you have – if any – and ensure you are aware of what cover can be offered to you in terms of critical illness and income protection.

At this point in your life, you should try to increase your pension contributions, especially if your employer matches the increase with their own. Retirement planning is essential from an early age, since early pension contributions can work the hardest for you.

You may also begin to think about inheritance tax planning, especially if you plan to use your money to support your children as they get older and begin to consider education and moving out.

Why might you seek financial advice?

There are three common reasons why people decide to seek personal financial planning advice from an expert financial planner.

• You have a specific financial need, like considering owning a home or receiving unexpected inheritance from a relative
• You have an issue and think you benefit from expert advice, like if you have some spare money that you’d like to use to help your children
• You want peace of mind that you are making the best use of your finances, like making use of tax or ISA allowances or effectively funding your retirement.

At this time in your life, you are likely to be thinking about benefitting from financial advice around money you are considering using to support your children or you are looking for confirmation that you are making the best use of your finances.

You may be considering buying or improving property to enhance your property portfolio or you might be facing the financial impact of divorce and relationships breakdowns.

Preparing for your financial future

You will be planning for your retirement in the second half of this time period, which includes taking advantage of any higher rate tax relief and committing to long-term risk rated multi-asset investing.

A pension is one of the most tax efficient investments available at present because they offer income tax relief on any contributions you make, your investment grows free of all taxes and the fund is free of inheritance tax, too. Therefore, retirement planning is a crucial financial aspect to consider during this time, especially if you are wondering “how can I retire early?”

It is also advised that you should have organised a Will by this time and you should continue to keep it updated. There are other conversations you should have with your parents around setting up a Lasting Power of Attorney for them, whilst considering one for yourself. Dealing with your parents’ financial matters due to serious illness can be stressful, time-consuming and costly without a Lasting Power of Attorney.

Choosing Perspective’s financial planners to support you

Perspective Financial Group Limited is the parent company of several financial offices across the UK. Our expert financial advisers from our locations will provide you with the support you need.

Financial planning is invaluable in supporting you, no matter your age or current financial circumstances. Our personal financial planning services consist of everything from general advice on managing your money to later life planning and meeting the cost of care.

Based at our local offices across the UK, our financial advisers can provide you with a range of financial planning services, all of which are authorised and regulated by the Financial Conduct Authority.

We have also created a handy and helpful document where you can read all of this information: find that here.

If you are ready to begin working with a financial adviser to support your personal financial planning goals, find your closest Perspective local office now.