Starting a pension at 50 or later can still lead to a comfortable retirement with the right planning. Many people assume they have left it too late, but that is rarely the case. At Ascent Financial Planning, we regularly help people with little or no existing pension savings take practical steps to improve their retirement outlook through tailored pension planning advice in North Wales.
Why starting a pension at 50 is still worthwhile
Pension planning in later years is different from starting earlier because the focus shifts from long-term growth to balancing contributions, investment risk, and retirement timing. While the time horizon is shorter, pension contributions can still benefit from tax relief and structured planning, making even a five to ten year saving period worthwhile when approached realistically.
How much you need to save from age 50
As of the 2025/26 tax year, the full UK State Pension is £230.25 per week, around £11,973 per year. While this can cover essential living costs, it is unlikely to provide a comfortable retirement on its own. There is no fixed amount everyone should aim for at age 50, as the right level of saving depends on your lifestyle expectations, planned retirement age, and any existing pensions or savings.
In practice, starting later often means higher monthly contributions, working for longer, or a combination of both. Speaking with the experienced advisers at Ascent Financial Planning can help you understand what options are realistic based on your individual circumstances.
Pension options available for late starters
There are several pension options available to people starting later in life. The most suitable choice will depend on how much time you have before retirement and how much risk you are comfortable taking. Common options include:
- Workplace pensions, which can be particularly valuable if your employer contributes towards your retirement savings.
- Personal pensions, offering a straightforward way to build retirement savings independently of your employer.
- Self Invested Personal Pensions (SIPPs), which provide greater control over investment choices but require careful risk management as retirement approaches.
The right option is not about flexibility alone, but about aligning your pension with your retirement timeline and income needs.
Tax advantages of contributing later in life
Pension contributions made in your 50s can still be highly tax efficient.
In many cases, you can receive tax relief on pension contributions of up to 100 percent of your earnings, subject to annual allowances. Some individuals may also be able to use unused allowances from previous tax years. For higher rate taxpayers, pensions can also help manage tax exposure in the years leading up to retirement.
Tax rules can change and outcomes depend on individual circumstances, which is why regulated advice is essential before making decisions.
Next steps: understanding where you stand
Before making changes to your pension, it’s important to have a clear picture of your current financial position, including income, existing pensions, savings, and debts. This allows realistic decisions to be made about contributions, retirement timing, and future income.
If you would like a clearer overview of how pensions work, our introduction to pensions guide explains the basics in plain English.
https://ascentfp.co.uk/afp-introduction-to-financial-planning
How Ascent Financial Planning can help Our professional advisers take a holistic approach when working with you to create your retirement plan. We help you review your finances and establish the most suitable pension journey for you, so you can start looking forward to a comfortable and fulfilling retirement.
The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.
