For many of us, our 30s and 50s are a busy time of life. Careers are advancing, families are growing, and financial commitments are piling up – from buying a first home to saving for children’s education and perhaps a big family holiday or approaching retirement. With so much going on, it’s important to make retirement planning one of our priorities.
These two decades are crucial for setting the foundations of a secure retirement. By making informed decisions now, you can ensure your pension savings keep pace with your lifestyle goals. Reaching your 50s marks a pivotal phase for your pension strategy. Retirement is getting closer, and many life events, policy changes, and tax rules can significantly impact your options.
Why these years matter
Your 30s and 50s are often described as the “building years.” Time is still firmly on your side, meaning compound growth – when your returns generate further returns – can make a huge difference if you keep contributing steadily. These are also the years when your career usually gathers pace, and your income rises. But at the same time, you may face some of life’s most expensive milestones: buying your first home, raising children, or saving for their education. The challenge is balancing these responsibilities while making sure your pension isn’t left behind.
Key life events and pension considerations
Starting a family
If you’re starting a family, it’s important to review your protection needs, as life insurance and income protection policies can help safeguard your family if the unexpected happens. Also, update your beneficiaries by ensuring your pension provider has the correct nominations in place. And finally, stay consistent: even if childcare costs weigh heavily, try not to pause your contributions for long periods.
Buying a first home or upsizing
Mortgage repayments often squeeze disposable income, but it’s important to maintain at least the minimum pension contributions to benefit from employer contributions and tax relief. And if you receive a pay rise, consider diverting a portion straight into your pension rather than increasing your living costs.
Children’s education (school & university)
Saving for school or university fees is common, but it’s worth remembering that while you can borrow for education, you can’t borrow for retirement. That’s why it’s important to balance your contributions between short-term savings, such as ISAs or Junior ISAs, and your pension.
Career progression and salary growth
Each time your salary increases, it’s worth reviewing your pension contributions. Many people aim to allocate around 12–15% of their gross income throughout their 30s to 50s, including employer contributions. Where available, consider using salary sacrifice schemes to boost tax efficiency.
Investment & saving strategies
Diversification is key, and pensions typically invest in multi-asset funds – so it’s important to check whether your fund matches your risk appetite.
Regular reviews also matter, as both markets and personal circumstances can change. With our Guidance+ service, you can stay on track with your retirement plan by identifying contribution needs, analysing expense behaviours, and assessing risk assumptions.
It may also be worth considering consolidating old pensions if you’ve changed jobs, since having fewer pots makes monitoring easier – just be sure to check for guarantees or fees before transferring. At Moneyfarm, you’ll also receive a complimentary, unbiased investment comparison analysis, which you can discuss with your dedicated Wealth Manager.
Approaching retirement
Delaying access to your pension can pay off. You become eligible to access your Defined Contribution pension – typically with 25% available tax-free – from age 55 (rising to 57 by 2028). While it may be tempting to withdraw early, doing so can trigger the Money Purchase Annual Allowance (MPAA), which caps future contributions at £10,000 per year.
Planning how you’ll withdraw is just as important, whether through drawdown, annuity, or lump sums. Annuities provide guaranteed income, while drawdown offers market participation but comes with risk.
It’s also crucial to keep an eye on State Pension timing, as the eligibility age is rising to 67 by 2028 and could reach 68 or higher, meaning reliance on it alone may leave gaps.
Also, avoiding costly mistakes is essential: early withdrawals can erode long-term growth, and high fees can weigh heavily on returns, paying just 1% less annually could add significant value over time.
Other factors to consider include inflation, which reduces purchasing power over the years; estate planning, ensuring your will reflects your current wishes and recognising that pensions can pass tax-free to beneficiaries if you die before 75; and protecting yourself from scams by only dealing with FCA-authorised providers.
Real-life scenarios
Consider Anna, 34, who has just had her first child. With childcare costs stretching her monthly budget, she’s tempted to pause pension contributions. But by keeping them going, even at a reduced level, she secures her employer’s matching contributions and avoids losing precious years of growth. Or take James, 42, who has just moved into a new home. Mortgage payments are a big outlay, but he decides to channel part of his recent pay rise into his pension. This way, his retirement savings continue to grow without affecting his existing household budget.
Worked examples: how small changes grow
Example 1 – consistent contributions
- Age: 35
- Salary: £50,000
- Pension contributions: 10% of salary (£5,000/year, incl. employer match)
- Growth assumption: 5% per year
- By age 65 → around £330,000 saved.
Example 2 – delayed contributions
- Same person starts at 45, instead of 35
- Same 10% contribution (£5,000/year)
- By age 65 → around £170,000 saved.
The 10-year delay costs nearly £160,000 in retirement savings.
Your pension savings benefit from compound growth, where returns generate further returns over time. Money invested in your 30s could work for 30+ years, while money you add in your 50s still has 10 years to grow. Consistency is far more powerful than trying to “catch up” later.
Quick Retirement Checklist (ages 30–50)
- Review your pension at least once a year (check contributions, fees, performance).
- Increase your contributions whenever your salary rises.
- Keep an emergency fund (3–6 months’ expenses).
- Use ISAs for medium-term goals, not your pension.
- Protect your family with life cover and income protection.
- Estimate your retirement income needs using cashflow analysis and investment comparisons like the ones provided with Guidance+.
How to stay on track
Think of your finances like a portfolio of priorities: your pension is the long-term anchor, your emergency fund ensures short-term stability and your ISAs and other investments give you flexibility for medium-term goals like education or home upgrades. Aligning these together makes sure today’s commitments don’t derail tomorrow’s retirement.
The key lesson from these examples is that consistency matters more than perfection. Whether you’re starting a family, paying a mortgage, or saving for education, small and steady contributions can grow into a meaningful retirement pot. Aim for a long-term savings rate of 12–15% of your income (including your employer’s contributions). Consider using salary sacrifice to make contributions more tax efficient, and review your pension annually to make sure your funds and risk profile remain aligned with your goals.
It’s also a good idea to consolidate older pensions where possible to avoid unnecessary fees and complexity, though professional advice can help determine if this is right for you.
The bottom line
Your 30s and 50s are about balance: meeting today’s commitments without neglecting tomorrow’s needs. By keeping pension contributions going, using salary increases wisely, and reviewing your plans regularly, you give yourself the best chance of enjoying a secure and stress-free retirement. Remember: retirement planning isn’t about making huge sacrifices now, but about building steady habits that compound over time.
If you’d like personalised guidance, you can book a free appointment with our experts to talk through your financial situation.
*As with all investing, financial instruments involve inherent risks, including loss of capital, market fluctuations and liquidity risk. Past performance is no guarantee of future results. It is important to consider your risk tolerance and investment objectives before proceeding.
