5 expensive drains on your finances when you are over 50
6th December 2011
The older you get, the more expensive things seem to become. Below are 5 drains on personal finances for over 50 year olds.
Children
Children are a huge drain on households and individuals over the age of 50. Having children in the house later in life could have a significant impact on any retirement decision you make. A new study by insurance company Standard Life has revealed that 49% of households containing those aged 45-65 years old with two children have no financial plans for the future. The study found that you are more likely to retire later in life if you have children living at home. In fact, a staggering 10% of those who aren’t retired don’t plan on doing so until they’re between 71 and 75.
With this in mind, looking into something life Over 50s Life Cover might not be a bad idea.
Housing
Being a homeowner can be extremely costly. Although you may have paid your deposit and stamp duty, you may still have to pay off your mortgage. There could also be insurance/maintenance left to pay on the property, whether it’s a new kitchen or a new boiler, the costs all add up. The majority of over 55 year olds still have, on average, approximately £75,000 on their mortgage.
Income Tax
Over 50 year olds might be earning significantly more during this period in their life than any other time, but ultimately they will be paying more income tax.
Retirement
Anybody who is close to retirement may need to make larger contributions to their pension pot, subsequently draining their disposable income.
Debt
Over the years you may have accrued some debt through credit cards, personal loans and more. If you’re still paying it off, and the interest that goes with it, it could be a serious drain on your finances.
As you start to plan for later in life, the most important thing is to consider which outgoings are important and which ones can be sacrificed. Considering the current economic climate, prudence is something we could all employ...no matter what age we are.
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