Article Financial tips for every stage of life

Life doesn’t come with a one-size-fits-all plan, and the journey from young adulthood to later years brings opportunities, challenges, and financial questions. As you move through each stage, your financial needs and priorities will shift – whether you’re going to university, working towards career milestones, or considering your legacy.

This article takes you through seven common significant life stages, from moving out on your own to navigating retirement and beyond. We’ll explore relevant insights and tips at each stage, linking you to valuable guides we’ve created to support you along the way. So, whether you’re preparing for the next big step or simply curious about what lies ahead, this guide will help you be ready for whatever comes next.

Embracing a new way of living: longer multi-stage lives

Most people will pass through these stages at some point in their lives, but there’s no hard and fast rule. You might decide you want to skip a stage or do them in a different order. In our article Say goodbye to ‘learn, work, retire’? Embracing the age of longevity, we look at how the traditional order of life is no longer the only option. Instead, it’s all about embracing the multi-stage life in the best way possible, and we look at how that applies to you in What does a multi-stage life mean for you?

1. Living independently: budgeting, saving and investing

Moving out on your own is likely to be the first significant milestone, and it can take some planning to get it right. You’ll need to think carefully about how much you’ll need to move out, and whether your income will be enough to sustain you. Bear in mind that things could vary depending on whether you’re leaving for university or a job, as your income will likely be very different. Budgeting is a vital skill at all stages of life, if you’re a student you might find our guide on budgeting for university students can give you some tips to get started.

But it’s also important to think ahead. Your aim is to live independently for the long term, which means careful financial planning is key. For example, have you considered how much you’ll need to live on in retirement? Our guide walks you through how to create your 100-year financial life plan.

Alternatively, if you’re hoping to retire early, you’ll need make sure you’ve thought ahead financially. It’s never too early to start thinking about your pension, because the earlier you start, the more likely it is you’ll be able to reach your goals. 

2. Career progression: adapting to change, evolving skills and building an emergency fund

Moving up the career ladder can take a number of different forms, and again, it doesn’t have to be linear. You could find that you want to switch careers, perhaps set up a side hustle or take a sabbatical, and it’s important to prepare your finances accordingly. As the world of work is changing, you might find you need to upskill or retrain throughout your career. Our guide will offer some insight into how to do that affordably.

Make sure to plan for the unexpected too. You might want to consider what would happen if you were made redundant. For example, have you got the necessary income protection products, and do you know how it would affect your workplace pension? 

3. Marriage or partnership: managing money together

Marriage is a significant milestone in anyone’s life, not only on a personal level, but also financially. Now’s the time to consider how merging lives will impact your financial future, making sure that you’re both working towards the same goals. Planning sufficiently could also help you make the most of benefits like the marriage allowance. It’s also important when it comes to retirement and long-term financial planning – making sure you’re both making the most of your pension(s) and can planning for the future you want together.  

4. Starting a family: budgeting for kids and future expenses

There’s no denying that raising a child is expensive. In Scotland raising a child to age 18, costs an average of £260,000 for a couple and £290,000 for a single parent.¹ This means thinking carefully about your finances if  growing your family is key. For example, childcare can be particularly expensive – you can find ways to help manage childcare costs in our guide.

Setting up a savings account for your child could also be a priority. You might like to consider a junior ISA – a long-term tax free savings account for children. Find out more about the key financial considerations for first time parents to help you get up and running. You can also discuss these options by speaking to a financial adviser. You can find an adviser on MoneyHelper – but please be aware there may be a charge for this.  

5. Mid-life financial planning: caring needs and retirement planning

When you reach your Second 50 (our name for life after 50 years old) your financial needs can change again. You might still have childcare costs, but it’s also a chance to focus on your personal finances. Many in this age group will be part of the ‘sandwich generation’, and it’s important to find ways to stay financially resilient while you’re pulled in several directions. Now could also be the time that you re-evaluate your retirement plans.

If you haven’t yet thought about retirement, discover how to create a retirement plan, and ways to manage multiple pension pots from different employers. 

6. Retirement: securing your financial future

You’ve reached retirement age. So, what now? It doesn’t necessarily mean you can sit back and live off your pension income. In fact, many people choose to continue working long into their Second 50, perhaps continuing in their field or even setting up their own business. Retiring at a later age can have both health and financial benefits too. Find out how this could impact your pension.

If you’re ready to retire, remember you could be entitled to the State Pension. We've answered some common questions to help you understand the subject in more detail. 

7. Bereavement and legacy: managing finances after a loss

Considering what will happen after you’ve gone is a core part of financial planning. Writing a will is the first step to make sure your wishes are properly acted upon, but you’ll need to consider things like Inheritance Tax (IHT) and pensions too. To find out more, read our guide What happens to my pension when I am no longer here?

Planning for the future at every stage: money and mindset

Remember, everyone’s life is different, and we all follow our own paths. That’s the beauty of the multi-stage life. Whatever path you take, it’s easy to get caught up in the finances but make sure to check in on your mindset too. Our Financial wellbeing index covers how having a combination of money building blocks and mindset building blocks can help you build up good financial wellbeing.

Some things that could help is maintaining your mental and physical health, boosting your financial resilience and find joy in living well within your means.