The Five Ages of Financial Planning: 50-60 Winding Up & Winding Down

From when you are 18 and starting out as an adult learning about their finances to moving onwards and upwards as you build a family and continue to pay your mortgage, obtaining expert support from a financial adviser is crucial.

The decade between 50 and 60 are one of the five ages of financial planning. During this time, you may be at or near the peak of your career and you may have children who are leaving home and heading to university. No matter your circumstances, it is important that you obtain personal financial planning support from our expert financial advisers, based across a range of our locations in the UK.

Working with a financial adviser, or maintaining a pre-existing relationship with them, can help you make full and effective use of your financial resources, meaning you can expect a comfortable retirement and support your children or other family members as you wish.

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

Sometime during these years, you may finish paying off your mortgage, which is a big financial milestone. This means your money can potentially be used in other areas, like investing in your retirement or building a savings fund for your loved ones. If you decide to push harder with your pension pot, especially if you benefit from higher rate tax relief, working with a financial planner can ensure you are using one of the few investment options that benefit from tax efficiency.

You will have to think about estate and inheritance tax planning, especially if you are considering leaving any inheritance for your beneficiaries. Inheritance tax can be a punitive tax, with everything more than the inheritance tax threshold of £325,000 in the UK taxed at 40%.

You should ensure your cash savings remain at a modest level and commit to multi-asset investing if possible.

Why might you seek financial planning advice?

There are three common reasons why people seek financial planning advice:

• 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 point in your life, you will have a better understanding of your income needs, since you will have been considering your retirement for some time now. Although it seems like a long time away, especially from the young age of 35, early retirement planning can have a huge impact on your pension fund.

If you are considering the use of your income to support your children later in life, you should seek professional financial advice to ensure you are effectively managing your money to be able to comfortably do this. You may also need to potentially consider some form of succession planning as part of your personal financial planning approach, and working with an expert financial adviser from PFGL at one of our locations – our regulated local offices – can be a huge help.

Preparing for your financial future

It may seem daunting to plan ahead for the future of your family once you have passed away, but the reality is that spending time planning and investing now can make life easier for your loved ones, especially if you are considering protecting you and your family’s financial future.

You may also think ahead for your future, like later life planning and meeting the cost of care, to help your family should you need to go into care.

It is important to maintain your Will and Lasting Power of Attorney, ensuring the contents and information are up to date. If you are yet to arrange both of these, it is critical that you sort these legal documents as soon as possible.

Also, with so many aspects of life being carried out digitally, it is more important than ever to organise and record your financial affairs in a way that can ease the burden for your loved ones when they have to deal with your affairs in the future.

With our personal financial planning services, offered through our regulated firms located throughout the UK and ranging from considering tax efficient savings to the financial impact of divorce and relationship breakdowns, it’s not too late to begin working with an expert financial planner to help support your money. These financial planners can provide a range of financial planning services which are all authorised and regulated by the Financial Conduct Authority.

Choose Perspective’s financial planners to support you

Perspective Financial Group Limited is the parent company of several financial advice firms located across the UK who provide personal financial planning advice and support to our clients.

Regardless of your age and financial circumstances, our financial advisers can offer FCA authorised and regulated support to ensure you are best prepared for your future, from ensuring your retirement savings are effective to providing for your loved ones and other beneficiaries when you pass away.

We have created a leaflet-style document including all of this information for you to access here.

If you are looking to receive specialist financial advice from one of Perspective’s financial advice firms, search our locations to find your closest local office today.