Five Financial Questions Every 50-Something Professional Should Be Able to Answer

Most people in their fifties feel behind. Almost nobody is as behind as they think — but very few can answer these five questions, and that is the gap worth closing.

1. What are all your pensions worth, today?

Not roughly, and not just the current one. Every pot from every employer, with a current valuation.

2. What did they charge you last year, in pounds?

Charges compound against you. Legacy policies are frequently the most expensive thing in a portfolio and the least examined.

3. What does your retirement cost per year?

Price the life you actually intend to live, then multiply. The pot size means nothing without this number to compare it to.

4. What income will your pensions actually produce?

A projection, not a hope. Then set it against question three. The gap between the two is the single most useful piece of financial information you own.

5. When did you last choose your risk level?

For most people the honest answer is 'at enrolment', which may be twenty years and a very different life ago.

If you cannot answer them

That is normal, and it is fixable. All five are answerable within a few weeks — most of the work is requesting information rather than making decisions.

If you'd like these questions answered for your own situation, download our free guide, The Pre-Retirement Pension Review, or book a free no-obligation call at www.dmfinancialplanning.co.uk.

Important information

This article is for general information only and does not constitute personal financial advice. The value of investments can fall as well as rise and you may get back less than you invest. Tax treatment depends on individual circumstances and may change. A pension is a long-term investment; funds cannot normally be accessed until age 55 (57 from 2028). DM Financial Planning is a trading style of Aegis Financial Planning Limited, authorised and regulated by the Financial Conduct Authority (FCA No. 624298).