For those of you who are interested, I have opted for a Stakeholder Pension and a Stocks and Shares ISA – both with Aviva. I have stuck with managed funds for now because I have no idea how these things really work. I intend to add to these funds over the next 20 years, but who knows what is to come and I don’t want to over stretch myself and land myself in financial difficulties somewhere down the line.
This is where I am now. It’s a lot better than where I was 6 months ago with only the state pension as a retirement option. I am doing what I can with what I have, without sacrificing the work life balance I have spent the last few years creating for myself. If you have useful and proven advice I am happy to hear it and research other possibilities. This is not a vlog for criticising the state pension. I am working with what’s available to me now….(read more)
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When it comes to retirement planning, the general recommendation is to start saving as early as possible to ensure a comfortable and financially secure retirement. However, life doesn’t always go as planned, and many people find themselves reaching the age of 50 without having started a retirement fund. Is it still possible to start saving for retirement at this age? The short answer is yes, it is never too late to start saving for retirement.
While starting a retirement fund at 50 may not be ideal, there are still several options available to help you build up your savings in the years leading up to retirement. One of the most common options is to take advantage of employer-sponsored retirement plans, such as a 401(k) or a pension plan. These plans allow you to contribute a portion of your salary to a retirement account, and some employers even offer matching contributions, which can help boost your savings.
If you are self-employed or your employer does not offer a retirement plan, you can still set up an individual retirement account (IRA) or a Roth IRA. These accounts allow you to contribute a certain amount of money each year, and the earnings on your contributions grow tax-deferred or tax-free, depending on the type of account.
Another option is to invest in stocks, bonds, or mutual funds through a brokerage account. While these investments carry more risk than retirement accounts, they also offer the potential for higher returns. It is important to do thorough research and seek guidance from a financial advisor before investing in the stock market, especially if you are new to investing.
In addition to saving and investing, it is important to consider other sources of retirement income, such as Social Security. You can start collecting Social Security benefits as early as age 62, but waiting until full retirement age (usually between 66 and 67) will result in higher monthly benefits.
It is also important to take into account your lifestyle and spending habits when planning for retirement. This may involve cutting back on expenses and making smarter financial choices to ensure you have enough savings to support yourself in retirement.
While starting a retirement fund at 50 may require more discipline and commitment than starting at a younger age, it is still possible to build up a substantial nest egg by the time you retire. By taking advantage of employer-sponsored plans, setting up individual retirement accounts, investing wisely, and making smart financial decisions, you can work towards a comfortable and financially secure retirement, even if you are starting later in life.
You’ve got this ! X
All I would say is it is really good to plan like this as I was really fit and well until last year when the stress related to looking after family hit me hard but financially planning certainly gives you one less
Thing to worry about
Just cone across your video.A great video down to earth and relatable. I'm in a similar position, started late. Be interested on the side hustles you mention.
Keep up the good work
By the way, when people talk of "gambling" on the stock market, they think of buying shares in individual companies. The better investments are the "ETFs" which are a combination of many companies. i.e S&P 500. Much less of a risk.
Thank you for sharing. I'm 45 and have just started my first stocks and shares isa. I'm also putting 30% of my average wage into my works pension. I'd imagine there are A LOT of people in their 40's still putting in the bare minimum into works pensions. I'd wager the state pension will drop to zero in 20 years. There will be a lot of our generation suffering.
Hi Claudia, I haven't commentated for some time but i do watch your videos. I'll be honest i'm not sure how i feel about this video. Its very interesting how you are so focused on money. Everything you described in how you are going to save money, is this your money from your earnings or does your UC help pay for all this? If you say your in a position to not miss the money your going to invest then your in a very lucky position. Will you still be able to do this when your UC is stopped? I'm 52 and have 2 jobs of which i pay tax for both and yet i feel i cant save for retirement. Your very disciplined when it comes to money which is a good thing but dont you ever think to treat yourself now while you can enjoy it? No one knows when you become ill or suffer an injury which limits your quality of life. I'm in 2 minds about this because both my parents worked extremely hard all their lives and got very little to show for it. My dad retired at 67 and was dead the following year. Your videos are always thought provoking and educational. Thank you. Have a good weekend.
also for stocks and share ISA – take a look at trading212. Its so much easier & the fees are MUCH MUCH lower
take a look at Damian Talks Money, or MeaningfulMoney – Managed funds are not great – actively managed funds do not outperform the benchmarks & that you would have been better off investing into Passive ETF funds. The fees on active funds are greater and based on previous results, you would have been worse off.