Age 50+ Life Insurance
Life cover for the over 50's
You've reached the grand old age of 50 and now you're possibly giving serious thought to your retirement pension, life insurance for over 50's and other retirement-related financial affairs. Your pension is becoming increasingly important and you need to know what your options are. Using our network of specialist financial advisers, QuoteRack can help you to sort out your financial affairs, so you will know what your options are.
You can retire at any time between age 50 and 75. From 6 April 2010, the minimum age of 50 increases to 55. If you are aged over 50, you can take your retirement benefits even though you continue to work and receive both a salary and a pension.
At retirement you can take up to 25% of your fund, including protected rights, as a tax-free lump sum. The remaining 75% must be used to provide a pension. This does not mean that an annuity has to be bought. The purchase of an annuity can be deferred and an income taken from the fund. This process is known as Income Withdrawal. An annuity must be bought by age 75. At retirement, when benefits are taken, a test must be carried out against the Lifetime Allowance.
Since 6 April 2006, there is now greater flexibility about taking your benefits and continuing to work. You may wish to work part-time and access part of your pension fund in order to augment your salary. That will be allowed.
Prior to 6 April 2006 you could not access benefits early from an occupational scheme without either first transferring into a personal pension plan or leaving the employment to which the scheme relates. This is no longer necessary. Provided the occupational scheme rules permit, you could take all or part of your pension and continue to work in that employment.
"There's lots of reasons why you might want a life insurance policy and as you get older you might think it's too expensive. QuoteRack can put you in touch with specialist insurance brokers that will be able to help, so give us a try."
If you are in an occupational pension scheme you previously could not make additional retirement saving except through an Additional Voluntary Contribution – AVC - arrangement attached to the occupational or a free standing AVC plan unless you earned less than £30,000 p.a. The new rules will allow you the flexibility to pay extra contributions to a personal pension plan or to one of the new, low cost stakeholder pension schemes, irrespective of how much you earn.
Contributions you could make to a pension scheme were restricted to a percentage of your salary. In the case of an occupational scheme, the limit was 15% and in the case of a personal or stakeholder scheme the limit depended on your salary and ranged from 17.5% to 40%. Now no limit applies. The only restriction is the amount you can pay to which tax relief will apply – this is limited to the amount of your earnings.
The object of the new rules was to make life cover for older people simpler and more flexible so as to encourage people to engage more readily with the pension system which previously had been complicated and off-putting for many people. We recommend using QuoteRack brokers and financial advisors, who are well-placed to offer the best deal for your over 50 life insurance.
Over 50 Life Insurance - Links
Mabels... The over 50's resource - Extensive assisted living retirement resource for all your over 50 retirement needs to make the most out of life. Including retirement advice & your benefits, pension & finance advice, money saving tips, health & wellbeing, travel offers, leisure, mobility aids, helpful organisations, articles of interest, Nostalgic memories & original gifts. - click here to visit
Retirement-Happy.com The comprehensive Retirement web directory. The online Retirement directory designed to help its users find the Retirement source, companies, products, services, and information.
"As a silver surfer, I know how difficult it is to get life insurance quotes for the over 50’s. QuoteRack put me in touch with an IFA who specialised in life cover for those of us 50-plus and he quoted us an extremely competitive quote for a whole life policy"
"I didn’t realise that being aged over 50 can cause problems when seeking quotes for life insurance. QuoteRack was able to find me a financial adviser who gave me great advice about my life cover, plus he was able to help me with my annuity too"