How to plan your investments depending on your age

Successful investment is never just a matter of looking for a bargain when you find you have some spare cash. It always requires careful planning.

But that planning needs to depend on your circumstances and your age – because as the years go by our priorities and financial goals change dramatically.

We look at some of the answers for tax-efficient investment for different age groups.

Children and teens

Young people may not have an income, but they may have generous parents and grandparents.

The simplest way to invest for your younger generation could be a Junior ISA. Family and friends can gift up to £9,000 per tax year, and like other ISAs, the proceeds will be free from dividend, income and capital gains tax.

This is then available for the child to use when they reach the age of 18.  There is also the option of a junior pension, which will remain invested until they are mature enough to use it wisely, and according to HMRC figures, around 60,000 under 18s have a pension plan.

The power of compound growth and skilled investment management could mean that in around 50 years’ time, they could have a comfortable retirement, whether or not they make pension contributions of their own.

You can pay up to £2,880 a year into a junior pension which will be topped up to £3,600 by the government in tax relief.

Staying Connected

Whatever your age, investments need to be planned around your financial circumstances. To start getting a clearer idea of the possibilities for you and your money look at our free online service here.


There are plenty of ways to spend your money in your twenties. While retirement is unlikely to be high on your list, saving with a pension is ideal for long term planning.  Joining a company pension scheme where your employer will pay in with you is a good place to start.

Of course, you will also want to think about investing to build cash for a deposit on a first home. A Cash ISA or Stocks and Shares ISA, which allows you to subscribe £20,000 a year in tax-efficient savings could help money grow, but still be available for that all important house purchase.


Your thirties could be a time for starting to settle down. With a mortgage and perhaps a family to pay for, spare cash will be in short supply, but accumulating wealth and investing should still be priorities.

Even relatively small amounts can build into much larger sums with the right investments. An investment fund might be worth considering, alongside your existing ISAs.

Of course, with a home and family, you will have responsibilities. Life insurance will be a must and paying off debts should be balanced against investment.

Your home may be repossessed if you do not keep up repayments on your mortgage.


Your forties are when you are likely to hit your peak earning potential. Your expenses may be starting to reduce, and you may find that you are in line for inheritance windfalls.

So, you should be thinking about the future, and looking at ways to secure your pension pot or carefully plan your investment portfolio for the future.

Your focus should start to shift from asset growth to risk management. Planning to reduce the risks should become a priority rather than simply accumulating as much wealth as possible.


Some people may have minimal mortgage to pay off, and potentially children who have left home, which will allow time to start focusing on the level of income you will need in retirement.

Once you have a realistic income target you can see whether your pension pot will provide the income you need.

You may need to finalise your retirement planning, even if it means using your 50s to continue earning and give your retirement savings a final boost.

For most people, this is where our Continuum experts can help, planning for your future and the retirement you wish for.

Your home may be repossessed if you do not keep up repayments on your mortgage.


Once you reach your 60s, retirement is likely to be in sight and making the most of your pension is vital – remembering the annual contribution limit of £40,000.  This also means that making full use of your ISA entitlement is still vital.

You may consider your investment focus should shift towards income and capital preservation rather than growth. If you intend to keep a proportion of your pension invested after you retire, continuing to take investment risk for longer will give it more chance to grow in your later years.

Call us

At Continuum we constantly monitor the entire investment market – a call to us could help you find the best way to keep your investment free from the taxman.

And beyond

What about investment after your retirement?  It is still possible to make pension contributions, but there are tight limits once you have begun to access your pension pot. Fortunately, your ISA entitlement will continue unaffected.

Preserving the capital that you have worked so hard to accumulate becomes the priority, along with carefully planning your estate for intergenerational planning.

Getting help

Tax efficient investment can make a huge difference to your wealth, but getting the right investment for the particular stage of life you are at is vital, as is expert support, and an investment strategy aligned with your age, and objectives.  At Continuum we can help, with a personalised investment planning service, whatever stage of life you have reached.


The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable investment strategy, you should seek independent financial advice before embarking on any course of action.

The value of investments can fall as well as rise and you may get back less than you invested.

Levels and basis of reliefs from taxation are subject to change and depend upon your personal circumstances.

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