Five Top Financial Tips for the Over 50s
- Top Tips
- Published: 23 Sep 2009 in Money and General
Great ways to be wise with your money
The over 50s are like manna from heaven to financial companies and they will do anything to get your business. Why? Because they believe you are solvent, prudent and, most importantly, loyal. So it’s little wonder that so many banks, insurance firms and credit card providers are launching products specifically targeting the over 50s. But don’t fall for the spin – not all of the products are necessarily worth having.
1. Silver savings – The over-50s’ savings market is huge, and key for banks at a time when they are desperate to attract savings to fund their mortgage lending. You can get 50-plus instant access, notice and fixed-rate savings, but be sure to look at the wider market too. In the instant-access arena for example, the over-50s’ deals can be trumped by the best standard accounts.
2. Embrace the internet – Financial companies often launch online-only money products or offer discounts if you buy over the internet rather than in a branch. Utilities companies also have some of their cheapest tariffs online. Plus there are hundreds of internet-only financial providers – particularly in the insurance market – so you are missing out on a whole swathe of deals if you don’t log on.
3. Look at specialist insurers – over-50s’ specialists come into their own in the insurance sector where they really reward older clients. When it comes to car insurance, providers understand that drivers over 50 have lower mileage and a better safety record. There are also great deals to be had on over-50s’ home cover. For example, arrange home insurance with Insure4Retirement using Confused.com and you currently get an entire year’s home emergency cover for free!
4. The full package – Packaged current accounts offer a range of features and benefits on top of your day-to-day banking for a monthly fee. Alliance & Leicester’s Premier 50 is one such account and is only open to over-50s. But virtually all packaged accounts are targeted at older customers and focus on excellent service and exclusivity. The features and benefits offered are more likely to appeal to 50-plus customers - free annual travel insurance, for example, becomes a more valuable perk as you get older as arranging standalone cover becomes much more expensive.
5. Focus on your pension – As you enter your 50s sorting out your pension becomes more pressing. Top it up if necessary and if you have any long lost pensions from previous employers track them down for free with the Pension Tracing Service. But more importantly, look at where your pension fund is invested. If you have money invested in medium to high-risk funds, you may want to consider switching to cash investments to keep your money more secure.