Over-50s' biggest financial regrets and mistakes - have you avoided them?

We take a look at the money mistakes revealed by people aged 50 and over, and suggest what you can do to combat them.

Love Money
Last updated: 31 August 2018 - 7.03pm

When an international survey of over-50s around the world was undertaken,  the number one money mistake they said they made was not saving enough for retirement.  In fact, over a third of respondents said they wished they'd save more.

In second place, 27 percent felt that it was a mistake to have managed their finances without professional advice.

[Read more: How to protect yourself from pension scams]

Just under a fifth of respondents felt their biggest money mistake was letting emotions rule their investment decisions, while 11 percent pointed out a lack of diversification in their investment portfolios. Just 7 percent said they had failed to ensure they were adequately protected by insurance.

Every penny counts

Starting your pension saving early – even if you’re only putting a small amount aside – can make a big difference to the size of your pension pot when you come to retire.

To put that into context, the table below breaks down the final pension pot for a man earning £30,000 a year, saving 4 percent a month, depending on when he starts that saving habit. In this instance, 4 percent works out at just £100 a month, but as you can see, the final pension pot difference is significant.

Age of starting pension

Final pension pot

Tax-free cash

Income per year

25

£120,000

£30,000

£4,970

30

£103,000

£25,800

£4,330

35

£87,100

£21,800

£3,710

40

£71,800

£18,000

£3,100

45

£57,200

£14,300

£2,500

50

£43,200

£10,800

£1,910

Source: Hargreaves Lansdown pension calculator. Assumes average 5% annual growth and 1.5% management charge

Again, the earlier you start saving, the more you'll have.

 

[Read more: Revealed - 11 simple steps to make you £13,000 richer]

More from BT