As we mature our priorities and goals can change as well as our circumstances. Having the correct investment strategy when we reach the different stages of our lives is essential to ensure you achieve your financial goals. In your 20s you are likely to be starting your career and may be putting any spare money into an account with a low rate of interest. You have time to ride out any short-term stock market turbulence and by using your ISA allowance your investments will be free of income and capital gains tax.
In your 30s you will have more financial obligations but you may want to plan for your children’s University fees and your retirement. In your 40s you are likely to be in your peak earnings years so maximizing the contributions to your pension and making sure you are taking advantage of your tax-free ISA allowance are great ways to plan for the future.
Because of changes to pension rules that came into force a couple of years ago people in their 50s are considering retiring at 55. If you are thinking along these lines you need to think about the available investment options and you may move from a financial plan that is focused on producing income, to one that concentrates on growth.
People in their 60s traditionally would be thinking they are coming to the end of their working lives but people now work well into their 60s and 70s. It may be time to reassess your attitude to risk as your focus may now be on opting for low risk investments.
Whatever age you are we strongly recommend that you get professional financial advice and our qualified local financial advisers are here to help. Find more information on savings and investments.
Tax treatment depends on individual circumstances. Tax treatment, rates and allowance are subject to change.
The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.