How to save for retirement in your 50s

Reaching your 50s is an exciting milestone which brings retirement into sharper focus. The decisions you make at this stage can lay the groundwork for a fulfilling and enjoyable future, giving you the opportunity to shape the retirement you want.

This decade often comes with a blend of opportunities and responsibilities. You might be supporting children through higher education, assisting aging parents, working towards clearing your mortgage or even running your own business. 

No matter how busy life gets, it’s essential to keep your future plans firmly on the agenda. Your 50s present a valuable window to fine-tune your retirement strategy – there’s still time to make a meaningful difference, but it’s wise not to delay.

Below, we explore some of the most important elements of saving for retirement in your 50s.  

1) Understand your position

Review your existing pension savings

By the time you reach your 50s, it’s important to take stock of what you’ve accumulated so far. Start by gathering details of all your pensions, whether from different employers or a self-invested personal pension (SIPP) you’ve opened independently. This will give you a clear picture of your current pension savings.

Don’t forget to check your projected state pension using the UK government’s state pension forecast tool. This shows how much state pension you’re on track to receive and how you can fill any gaps. 

Don’t forget your other assets

It’s equally important to review any other savings and investments you have, such as stocks and shares individual savings accounts (ISAs) or cash savings. Knowing your total assets gives you a solid foundation for future planning.

Check where you’re invested

As you approach retirement, your investment choices can help set you up for later-life success. While you may want to gradually shift away from riskier assets like shares into less risky ones like bonds¹ or cash, being too cautious could mean your pension doesn’t last as long as you need it to. Keeping some of your portfolio in shares can help your money keep pace with inflation². The right mix depends on when you plan to retire and your attitude to risk, which you can read more about in our earlier article.

2) Think about the life you want – and what you can afford

Refine your retirement ideas

Your 50s are the perfect time to think seriously about the kind of lifestyle you want in retirement. This might include spending time with family, travelling, downsizing, part-time or volunteer work, pursuing hobbies and social commitments, and so on. Having a vision makes planning much easier. 

Identify any gaps

The Pensions and Lifetime Savings Association uses three benchmarks for a person’s annual retirement income: minimum, which allows you to pay the bills with limited cash to spare; moderate, which allows for more flexibility; and comfortable, which includes financial freedom and space for a few luxuries. These can be a useful starting point for you to decide what sort of income you’ll need and what’s feasible for you based on your savings. Learn more about how much you might need to save for retirement.

Don’t worry if you’re facing a shortfall, as it’s not too late to boost your savings. 

3) Make your money work for you

Max out on contributions

In your 50s, you are likely to be earning at or near your peak. This means the decade is a prime opportunity to boost your pension contributions. Even a small increase can go a long way, especially if your employer matches your contributions. For example, with auto-enrolment, many employers pay in 3% of your salary and you pay in 5%³, but if you increase your contributions to, say, 7% they might also pay in 7%. On a salary of £50,000, this could result in an extra £3,000 a year going into your pension, according to our calculations.

Open a SIPP 

If you’re self-employed or your employer only offers the minimum auto-enrolment contribution, saving into a SIPP can help you fill any gaps. You could also use your SIPP to save bonuses, inheritance or income from freelance work. The more you contribute now, the more comfortable your retirement will be. Bear in mind that fees across SIPPs vary, so it’s important to review the charges before opening an account.

If you run your own business, read our earlier article to discover the other perks of saving into a pension.

Make the most of tax relief and consider carry forward

Tax relief can significantly boost your retirement savings up to age 75. For every £80 you contribute to your pension as a basic-rate taxpayer, the government will add £20. Higher-rate and additional-rate taxpayers can claim an additional £20 and £25, respectively, through a self-assessment tax return.

The maximum amount you can pay into a pension and still get tax relief is the lower of £60,000 or 100% of your gross relevant earnings⁴. 

It might be possible to contribute more than this by carrying forward unused annual allowances from the previous three tax years. To do this, you need have been an active member of a pension scheme during that time. You also need to use up your full allowance for the current tax year first and have earned at least what you wish to contribute. For example, if you want to make a total contribution of £100,000, you must earn at least £100,000 in that tax year. 

Consider consolidating your pensions

If you’ve changed jobs a few times during your career, you might have accumulated several pension pots. Combining your pensions can make managing your savings much simpler and it’s easier to track your progress. If you consolidate your pensions with a lower-cost provider you’ll also save on fees, helping you reach your goal more quickly. However, not all pensions are suitable for transferring. Find out what to know before starting a transfer and how to transfer your pension to Vanguard. 

Your 50s are a powerful time to take control of your financial future. By acting now, you can build the retirement you deserve – one filled with freedom, security and possibility.

For more tips on how to save for retirement, check out our “Couch to a £500k pension” hub for a step-by-step plan.

¹ Bonds are a type of loan issued by governments or companies, which typically pay a fixed amount of interest and return the capital at the end of the term.

² Inflation is the rate of increase in prices for goods and services. 

³ The auto-enrolment minimum contribution for the tax year 2025-26 is 8% of your salary between £6,420 and £50,270. The 8% comprises 5% from you (including tax relief) and 3% from your employer.

⁴ For more on what counts as ‘relevant earnings’ that can earn tax relief when used to fund a pension, see the HMRC Pensions Tax Manual. Your annual allowance might be lower than £60,000 if you have a high income or you’ve already flexibly accessed your pension pot. To work out if you have a reduced (tapered) annual allowance, see HMRC’s website. If you’ve flexibly accessed your pension, you can work out what your alternative annual allowance is.

Investment risk information

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

Eligibility to invest in a Vanguard Personal Pension depends on your individual circumstances. Please be aware that pension and tax rules may change in the future and the value of investments can go down as well as up, so you might get back less than you invested. You cannot usually access your pension savings or make any withdrawals until the age of 55, rising to the age of 57 in 2028.

If you are not sure of the suitability or appropriateness of any investment, product or service you should consult an authorised financial adviser. Please note this may incur a charge.

Any tax reliefs referred to are those available under current legislation, which may change, and their availability and value will depend on your individual circumstances. If you have questions relating to your specific tax situation, please contact your tax adviser.

Your transfer will be sent to us as cash or shares (Vanguard funds only). During the transfer period any cash will not be invested so you could miss out on any increase in the value of your investments should the market rise.

Important information

Vanguard only gives information on products and services and does not give investment advice based on individual circumstances. If you have any questions related to your investment decision or the suitability or appropriateness for you of the product(s) described, please contact your financial adviser.

This is designed for use by, and is directed only at persons resident in the UK.

The information contained herein is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information does not constitute legal, tax, or investment advice. You must not, therefore, rely on it when making any investment decisions.

Issued by Vanguard Asset Management Limited, which is authorised and regulated in the UK by the Financial Conduct Authority.

© 2025 Vanguard Asset Management Limited. All rights reserved.

4904702