Planning Retirement Over 50s – FAQ

Over 50 Plans – FAQ

When you turn 50, you will finally find yourself with a host of new preoccupations centered on how your post-retirement financial future. As these FAQ show, a little planning can go a long way.

As an over 50 worker, what do I need to do to ensure security in old age?

  • Familiarize yourself with any changes in pension law. There will be many pension reforms over the course of the next 40 years, many of which will be gradually phased in. It is important that you stay up-to-date with these changes and how they apply to your circumstances.
  • Begin consulting with a financial advisor about your retirement and pension plans. There are no “ideal” courses of action; your decisions should be premised on your personal and financial circumstances, as well as the life you want for yourself moving forward.

When I Can I Claim My State Pension

You can claim your state pension once you’ve reached your State Pension Age (SPA). You can also choose to release up to 25% of your pension untaxed once you are 55. This option is risky, however, because it almost always ensures that your pension will be less once you’ve retired.

What if I do not wish to claim my pension after reaching my State Pension Age?

If you will not need to be dependent on your pension after reaching your State Pension Age (SPA), you can choose to defer it in exchange for increase income, or a one-off lump sum.

Can I work past my State Pension Age?

Yes. Previously, your employer reserved the right to retire you once you’d reached your SPA. But starting on April 2011, employees will have option of continuing to work past their SPA if they so wish. However, as you enter old age your lifestyle will likely change. Thus, you may want to consider flexible working hours or self-employment after reaching your SPA.

Can I switch to self-employment over 50?

Yes. Especially if you are coming close to retirement and receiving your pension, as the disadvantages of self-employment- no pension scheme, irregular work hours and pay- will be less risky for you. There are also funding and grant schemes provided by charities, trusts, banks, and building companies for over 50s. Keep in mind, however, that you will likely need to pay tax on your State Pension if you’re still gainfully employed past your State Pension Age and have chosen not to defer.

What can I do once I’ve retired?

  • Continue to work, but flexible hours
  • Volunteer
  • Travel and Leisure

Compare Over 50s Plans

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36p per day Automatically become a Foresters Friendly Society Member with access to a range of social and health benefits and financial support Full legal Will worth £199 with monthly premiums of £25 or more Read Foresters Friendly Reviews
£5 per month Early payout for terminal illness – if you’re diagnosed with a terminal illness, you can ask for a reduced benefit to be paid out early instead £60 M&S voucher Be the first to review this product and get a free Mr Men bruise soother
27p per day £250 Contribution towards your funeral costs with the Funeral Funding Option £30 in M&S vouchers
a DAB digital radio
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27p per day • Fixed rate, risk free
• You can transfer the ISA
• Tax free interest
£15 M&S voucher
£15 High Street voucher
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£5 per month • Tax free end cash pay-out
• Monthly contribution starts at only £10
• Life cover included
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