Five money-making tips for the over-50s

With more than 20 million Brits aged over fifty, here are five simple ways for this group to make more money.

There are more than 20 million people aged over 50 in the UK, according to the Office for National Statistics. In other words, just over one in three of the population (34%) has passed the half-century mark.

In a previous article, I referred to this group as the Golden Generation. Thanks to decades of hard work, plus rising asset prices (particularly property), this group owns three-quarters (75%) of the UK's entire net wealth. The total wealth of this group is roughly £4 trillion -- not for them the burdensome mortgages and over-spending habits of the young.

Targeting the over-50s

Of course, their personal wealth makes the over-50s an attractive target for businesses. Thus, a whole host of goods and services has sprung up to cater for the needs of Britain's seniors. The most successful organisations in this field recognise that the over-50s are a very diverse crowd, with wide variations in their needs and wants. Indeed, given post-war improvements in healthcare, lifestyle and longevity, it could easily be argued that '70 is the new 50'!

So, here are five money-making and money-saving tips for Britain's older, wiser generations:

1. Check out specialist savings accounts

According to the latest issue of Moneyfacts magazine, there are no fewer than 46 different savings accounts -- from 33 different providers -- aimed at the over-50s. Therefore, senior savers should not overlook these specialist accounts when shopping around for a home for their savings. Then again, some over-50s savings accounts pay terrible rates of interest, such as these eight shockers:

As you can see, despite their fancy names (such as Emerald, Midas and Oak), these accounts all pay less than the Bank of England base rate of 0.5% a year. My advice would be to move all money from these accounts into a Best Buy savings account such as the ING Direct Savings Account without delay.

2. Shop around for insurance

Car insurance and home insurance firms rather like the over-50s, because their maturity, prudence and reliability make them ideal customers. Alas, many insurers take advantage of older policyholders' loyalty by bumping up their premiums each year.

For example, I had an unhappy email from a reader who had insured his home buildings and contents with his mortgage lender for almost two decades. When he finally stopped renewing his policy and decided to shop around, he found similar cover at a third of the price!

In addition, don't forget to get quotes from specialist insurers such as SAGA and RIAS (the Retirement Insurance Advisory Service), as these companies specifically recruit older homeowners and drivers.

3. Make use of your OMO

Although older readers will recognise OMO as a laundry detergent from the Unilever stable, it also stands for 'open market option'. This OMO gives you the right to shop around when buying an annuity (a retirement income bought using the funds in a pension pot). Exercising your OMO can boost your annuity payout by a quarter (25%). So, don't take the first quote on offer from your pension company. Instead, use an annuity broker such as Hargreaves Lansdown, the Annuity Bureau or Annuity Direct in order to grab the maximum pension income on offer at the time.

4.Track down old pensions

If you've been working for 30 years or more, then you may have lost touch with occupational (work-based) pensions from previous employers. Given the constantly changing landscape of corporate Britain, it can be incredibly difficult to find these 'preserved pensions'. The good news is that the Pension Tracing Service, a free service operated by the Department for Work and Pensions, is expert at tracking down old pensions, thanks to its extensive database of occupational pension providers. It also tracks down personal pension providers, too.

5. Don't be scared of shares

Finally, the received wisdom is that investing in the stock market is 'too risky' for older investors, especially those over the age of 65. Personally, I think that this idea is hogwash, because there's a fair chance that a 65 year old could live long past the age of 80. What's more, over a fifteen-year timescale, shares are likely (though not certain) to beat the returns on offer from cash and bonds. Thus, equities should always play some part in older investors' portfolios.

More: Find a superior savings account | More advice and support for the over-50s | Four big ways to save heaps of money