Investments for those aged 50 or over Turning 50 is a time when many of us reassess our financial situation and take stock of our investment goals.  Reaching your fifth and sixth decade should spell a time of life when you feel financially secure, and when it comes to ensuring a comfortable retirement, choosing the right savings, pensions and investments vehicles for your needs is vital. The question is, how can you achieve this? If you're hoping to retire in the next 5 -10 years, it pays to consider the various investments available, such as topping up your pension or putting money into Individual Savings Account (ISAs). The new ISA deals If you'll have 50 candles on your birthday cake by 5th April 2010, or you are already 50 or over, the new ISA allowance for Individual Savings Accounts (ISAs), offering up to £10,200 worth of tax-efficient savings and investments is set to prove a substantial boon to financially savvy investors. As reported in the 2009 Budget, the new higher ISA allowance specifically designed for those aged 50 and over, allows those eligible customers born on or before 5 April 1960 to invest up to £10,200 in ISAs every tax year. HM Revenue & Customs has announced that these higher limits will come into effect from 6 October 2009. Up to £5,100 can be saved in a cash ISA with one provider. The remainder of the £10,200 can be invested in a stocks and shares ISA with either the same or another financial provider. Alternatively, you can invest the full £10,200 allowance in a stocks and shares ISA with one provider. If you will be 50 or over on 5 April 2010, you can start taking advantage of the new limits from 6 October 2009. Please check that your provider will be offering the increased limits, not all have agreed to from this date. Finding the best product for you If you already have a cash ISA, it's wise to check that you are getting the best interest rate deals, and, if not, shop around and transfer your ISA to a provider who can help you make the most of your money. It is perfectly possible to transfer an ISA to a new provider and you can do so without incurring charges or a penalty. However these rules may change in the future. You need to be aware that interest rates don't apply to stocks and shares ISA.  Stocks and shares ISAs are linked to the performance of the stock market, However, you must ask your new provider to request the transfer of your ISA from the existing provider rather than cashing in the ISA and then opening up a new one.  If you withdraw the money from your ISA, you will lose the tax advantages of the ISA and will only be able to reinvest in another ISA subject to your total investments for the year not exceeding the annual ISA allowance." Life insurance Ensuring that your life insurance is comprehensive and set up to cover your specific financial responsibilities, such as paying off your mortgage, supporting your spouse, or simply providing funds for funeral expenses, is also a necessity. You may wish to consider a life plan specifically tailored as an over 50s plan that will give you affordable cover and guarantee a cash lump sum for your loved ones when you're gone. For example, Halifax offers its Over 50 Guaranteed Life Plan (provided by St Andrews Life Assurance)   for as little as £10 a month, offering a guaranteed lump sum to give your loved ones a helping hand when you're no longer there for them. There is no medical examination or health questionnaire required, you do not have to make any statement about your health and St Andrews Life will not contact your GP. Stakeholder Pensions If you have a Stakeholder Pension Plan, don't forget that you are able to make top-up payments, which will help you move faster towards securing the funds you'll need for a happy, carefree retirement. Even better, the Government will contribute 20% of every investment you make to your plan, up to certain limits. So a £100 investment will only cost you £80. Stakeholder Pension Plans are also among the most tax-efficient investments currently available. If you’re a higher rate tax payer, you're also eligible to claim an extra 20% tax relief when you submit your annual tax return. While you're still in employment, consider how much extra you could afford to put away each month to top up your pension on a regular basis or transferring other savings to make a lump sum payment. A regular, small addition now could add up to a tidy pile when you'll actually need it. Do remember, however, that Stakeholder Pension Plans are stock market-based investments, so their value is subject to the ups and downs of the stock market. Consult your financial advisor to create the best investment plan for you and your longer-term goals.