Whether you’re nearing the big 5-0 or you’re long past it, you’ll be facing a raft of key financial decisions. So sort your finances now – after all, the older you get, the more your cash needs to look after you. Here are my key points to help.

Avoid life's biggest financial train-wreck

At retirement, many who've saved cash in a pension convert a large amount into an annuity which gives a regular income, usually for the rest of your life.

Worryingly, 60% just do this with their pension firm, rather than taking advantage of the best deals on the market. This can be an enormous loss, as once you make the transaction it sticks with you for the rest of your life.

Live 25 years and you could lose £14,300 per £100,000 compared with the getting the best rates. Therefore, the three simple rules for anyone getting an annuity are: A) Never just get it from your pension company, always check for better rates; B) Get a medical first, as hidden conditions such as glaucoma that are undetected could boost your annuity rate; C) If you’re not sure, it's better to pay for independent financial advice than make a mistake. You can find an IFA via www.unbiased.co.uk

Freebies & discounts

Getting older has its perks. Being over 60 is a bit like being a student – you should always ask if there are any age-related discounts. Even if they’re not published, it’s a great form of haggling.

There are of course the official state ones, like TV licences, prescriptions (in England), and bus passes in many areas. Then there are set corporate ones like 10% off B&Q on a Wednesday with a free card, discounts at Odeon cinemas, or 25% off some glasses at Specsavers.

See a full list at www.moneysavingexpert.com/50plus

Have the 'unpleasant issues' chat

Hopefully you'll live healthy and happily until you're 172. But in case problems arise, it's best to deal and communicate sooner and openly with your family.

a) One in three over-65s develop dementia. If you lose mental capacity, unless you've a Power of Attorney already, your loved ones need to apply through court, which can be a nightmare of cost and hassle, leaving money tied up.

Instead, a lasting power of attorney is far cheaper and means that if you lose your faculties you’ve already given permission for someone else to have the power to help out. There’s no harm in doing this long in advance, as it only kicks in when needed (I'm doing mine and I’m 41).

b) Think about your will, funeral arrangements, and inheritance tax planning. Don’t be afraid to talk to your family about your requirements and tackle these issues head on. It’s better said than left until you’re dead.

c) Consider doing a financial factsheet. This is especially important if one partner is in charge of the family’s finances. Here, you list every financial product, insurance policy, who the energy provider is (without too much detail in case it's stolen), then discuss it together - so if the worst hit, the other could take over with less stress.

Slice the cost of travel insurance

Travel insurance costs rise outrageously as you age. The cheapest ANNUAL policies for singles are around £23 in Europe if you’re 50, rising to over £200 for those in their early 80s.

One option is to look at changing bank account to get free travel insurance. The Nationwide FlexAccount (http://www.nationwide.co.uk/current_account/flexaccount/default.htm) is a fee-free account offering free European travel insurance up to age 75 (you must sign up by age 73) which can be a very cost effective way to get cover, though do declare pre-existing conditions. Other paid-for bank accounts allow you to get policies up to age 79.

For more on this and best buy insurance for if you're older, see www.moneysavingexpert.com/travelinsurance

Over a million miss out on pension credit

The full state single pension's £110.15 a week, yet if your total income is under £145 a week or even if you've some savings, you may be entitled to a top-up. So many people miss out on this, it's crucial to check. If you think you may be entitled, call 0800 99 1234.

Over-50s cheap car insurance

Older drivers often tell me finding cheap cover is tough, yet there are ways to save large. After all, the all-time record cheap car insurance policy from following my system is 96p for a year, fully comprehensive, by gran Barbara Wakerell. If you’re prepared to go the whole hog, try www.moneysavingexpert.com/carinsurance For speed, if you just want to dip your toe in the water: first, to get the maximum number of quotes in the minimum time, combine Moneysupermarket.com and Confused.com, then add the key ones they miss – Aviva.co.uk, Directline.com, Ageuk.org.uk and Castlecover.co.uk. That should give you a decent range of quotes to hopefully lower the cost.

If you’re not online, it’s a vastly more difficult process. You could call a local insurance broker to see what they can do for you – but as most of these policies are available even if you’re not offline, it may be worth getting a web-savvy friend to help you through the comparison.

Warning. Equity release is NOT a no-brainer

If you own your home but have little income, equity release loans are sold as a way to spend its value while living there.

Yet with rates at 5.5% to 7%, they’re far more costly than normal mortgages. But there’s another thing to consider here. With equity release you usually don’t make repayments, so interest compounds at rocket speed. Taking £20,000 aged 65 can mean almost £100,000 from your home’s value 25 years later.

If you’ve no dependants you want to leave assets to, it's less of a problem, but be very careful as it's easy to make mistakes. Borrow as little as you need, and leave it as late as possible.

Far better is to simply downsize your home if possible. Do that early too, as many tell me the older you get, the less inclined you become to move.