Articles for people planning their retirement
Welcome
Over 55 Planning is for people aged 55 and over who want clear, structured information about later life finances.
The site currently focuses on pensions and property, although we aim to expand into additional topics in the coming months. Our ‘no frills or filler’ content has been created to help you focus on the main decisions that often arise in retirement or the years leading up to it, so you can better understand your options.
Each article provides information on a specific topic, without any advice, recommendations or product promotion.
Pension related articles
Your Pension Planning Checklist
Even if you plan to keep working for several more years, it’s worth reviewing your pensions now. This helps you understand what you’ve built up so far, how your pensions are structured, and what your options will be when you retire
Understanding Pension Drawdown
Pension drawdown is a way of taking income from a defined contribution pension while keeping the rest of the pot invested.
Instead of buying an annuity or withdrawing the entire fund as a lump sum, you access the money gradually. You decide how much income to take and when, giving you control over both the timing and amount of your withdrawals.
Pension Freedoms
Pension freedoms refer to a set of changes introduced in April 2015 that significantly altered how people can access their defined contribution pensions.
These rules apply to most workplace and personal pensions where contributions are invested to build up a pot of money over time.
From age 55 (rising to 57 from 2028), individuals have full access to their pension pots and can choose how and when to withdraw funds.
Understanding Personal Pensions
A personal pension is a private retirement savings plan that you arrange independently, rather than through an employer. It’s a type of defined contribution scheme.
The final value depends on several factors. These include how much you pay in, how long you contribute, how well your investments perform, and the charges taken by the provider.
Understanding Pension Annuity
A pension annuity is a product that turns your defined contribution pension pot into a regular income. It’s bought from an insurance company using some or all of your pension savings.
Once set up, it provides an income based on terms agreed at the outset. These terms are fixed and usually cannot be changed.
Pension Consolidation and Transfers
Bringing multiple pensions together or transferring a pension from one provider to another can offer practical advantages, but it is not suitable in every case.
The processes of consolidation and transfer are often linked, but they serve different purposes and carry different risks.
Before making any changes to your pension arrangements, it is important to understand what these processes involve, how they work, and when they might be appropriate or potentially harmful.
Understanding your State Pension
The State Pension is a regular income paid by the UK government once you reach State Pension age and have enough National Insurance contributions or credits.
For many people, especially those without large private pensions or significant savings, it forms a key part of retirement income.
Payments are made every four weeks and continue for life once claimed.
Understanding Workplace Pensions
A workplace pension is a pension your employer sets up to help you save for retirement. You pay in a portion of your wages, and your employer adds their own contributions. The money is invested to build up a pot you can use later in life.
Some people have just one workplace pension. Others may have several, from different jobs over the years. These can include older schemes with guaranteed benefits or newer arrangements set up under automatic enrolment rules.
Property related articles
Assisted Living and Retirement Communities
As we get older, our housing needs often change. You might find that your health or mobility isn’t what it used to be, or perhaps you’re feeling a bit isolated living alone.
Home Care in Later Life
As people grow older, physical strength, mobility, memory, and general health can decline, often gradually. These changes may make it difficult to manage tasks that were once routine, such as getting dressed, preparing meals, or taking medication correctly.
Despite these challenges, many older adults wish to remain in their own homes rather than move into a residential facility.
Downsizing in Later Life
Downsizing means selling your home and moving to a smaller, more manageable property.
For many over 55, it’s prompted by changes in lifestyle, finances, or health.
It often follows retirement or when a family home becomes too large to maintain.
Downsizing can free up capital, cut living costs, and bring you closer to support, but it requires careful planning and consideration of both practical and emotional factors.
Understanding Home Reversion
A home reversion plan is a type of equity release that allows you to unlock some of the value in your home by selling part or all of it to a specialist provider. In return, you receive a tax-free cash payment.
This can be paid as a single lump sum, as a series of regular payments, or as a combination of both. Once the plan is in place, you retain the legal right to live in the property for the rest of your life, without paying rent, under a guaranteed lifetime lease.
Remortgaging in Later Life
Remortgaging involves replacing your existing mortgage with a new one, either with your current lender or by switching to a different provider.
This process can be used to change the interest rate, extend or reduce the mortgage term, or borrow additional funds against your home.
It does not require moving house, and many homeowners remortgage while continuing to live in the same property.
Understanding Buy-To-Let
Buy-to-let mortgages allow individuals to purchase residential property with the intention of letting it out to tenants.
For people over 55, buy-to-let can offer a potential source of retirement income or a way to diversify assets.
However, it also involves ongoing responsibilities, financial risk, and regulatory obligations.
Understanding Lifetime Mortgages
A lifetime mortgage is a type of long-term loan available to homeowners aged 55 or over. It allows you to release tax-free money from the value of your home without selling it or making regular repayments.
The loan is secured against your main residence and is usually repaid in full, with interest, when you die or move permanently into residential care.
Rightsizing in Later Life
Rightsizing is about finding a home that fits your life, not just now, but for the years ahead. It’s a move towards somewhere more suitable, rather than simply smaller.
That might mean fewer stairs, easier upkeep, better access to family, or simply a more pleasant place to live.