With retirement potentially just 10-15 years away, now is the time for a clear assessment of your progress. There’s no need to panic, but focusing on the right adjustments can help ensure a comfortable and fulfilling future.
Being honest with yourself now can prevent unpleasant surprises later and give you time to course-correct if needed.
Retirement planning isn’t just about hitting a financial target. It’s about building a sustainable lifestyle that supports your vision for life beyond your career.
Pro Tip: If you have over $150,000 in investments, consider talking to a professional financial advisor. WiserAdvisor is a free service that will match you with a pro in your area.
1. Are you maximizing your retirement contributions?
The IRS allows those 50 and older to contribute more to retirement accounts—a nod to the need for accelerated savings at this stage.
Take advantage of higher contribution limits for 401(k)s and IRAs. If you’re not maxing out, consider adjusting your budget to prioritize retirement savings.
Time is still on your side, but it’s limited. The power of compounding can still work in your favor—if you’re contributing enough.
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2. Do you know your retirement number?
At 50, you should have a specific target for your retirement savings—not just a vague notion of needing “a lot.” This number should consider your expected lifestyle, projected longevity, inflation, and potential healthcare costs.
Financial experts often suggest the 25x rule as a starting point: multiply your expected annual expenses in retirement by 25 to determine your target nest egg.
Clarifying this number can help you determine whether your current savings rate is sufficient or if adjustments are needed. Professional guidance can be especially valuable at this stage.
Pro Tip: If you’ve got more than $100,000 in savings, get some advice from a pro. SmartAsset offers a free service that matches you to a vetted, fiduciary advisor in less than 5 minutes.
3. Have you planned for healthcare costs in retirement?
Healthcare represents one of the most significant expenses in retirement, yet many 50-year-olds underestimate these costs.
Recent studies suggest that a 65-year-old couple retiring today might need to save approximately $300,000 just for healthcare expenses, not including long-term care.
Medicare will become an important component of your healthcare coverage at 65, but it doesn’t cover everything. You may need supplemental insurance, and you should understand what Medicare covers and what it doesn’t.
Pro Tip: Now is a good time to get help from a licensed Medicare agent to find the right plan and maximize savings. Compare plans today.
4. Are your investments properly balanced for your age?
The traditional wisdom of becoming more conservative with investments as you age still holds merit, but the execution requires nuance.
You may have 15+ years before retirement and potentially 30+ years of life in retirement, meaning growth is still important.
Review your asset allocation to balance growth potential with appropriate risk management. Personal circumstances should influence this balance—factors like pension availability, other income sources, and your risk tolerance all matter.
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5. Have you explored all potential retirement income sources?
Traditional retirement accounts form the backbone of most retirement plans, but diversifying your income sources can provide greater financial security.
Beyond your 401(k) or IRA, consider how Social Security, pensions, annuities, rental income, part-time work, or business interests might contribute to your retirement income stream.
Social Security planning deserves special attention at this age. Understanding when to claim benefits can significantly impact your lifetime income. For many, delaying benefits until age 70 can substantially increase monthly payments.
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6. Are you addressing potential financial threats?
At 50, it’s crucial to identify and mitigate risks that could derail your retirement plan. Market volatility, inflation, unexpected health issues, and financial obligations—like existing debt or supporting family members—can all impact your long-term security.
Debt, in particular, can be a major obstacle. High-interest balances can eat into your retirement savings, making it essential to develop a strategy for paying down what you owe.
Prioritizing debt reduction now can free up more of your income for savings and investments.
Pro Tip: If you have more than $20,000 in unsecured debt, get some professional help. National Debt Relief is a trusted source for free advice and assistance.
7. Do you have essential legal documents in place?
Estate planning isn’t just for the wealthy—it’s a vital part of retirement planning. By age 50, you should have essentials like a will, healthcare and financial powers of attorney, and possibly a trust.
These documents ensure your wishes are followed. Without them, state laws may decide what happens to your estate, creating complications for loved ones.
Review beneficiary designations on retirement accounts and insurance policies to ensure they reflect your current wishes, as they usually override your will.
Pro Tip: It’s not too early to think about protecting your family so you can live stress-free, knowing they will be taken care of. Where there's a will, there's a way.
Your roadmap to retirement confidence
These questions provide a framework for evaluating your retirement readiness. You still have time to make meaningful changes to enhance your financial future significantly.
Consider scheduling a comprehensive financial review with a professional who can provide personalized insights based on your specific situation and help you develop strategies to address any areas of concern.
Remember that retirement planning isn’t a one-time exercise but an ongoing process that requires periodic reassessment.
Pro Tip: Ask your financial advisor how you can protect your wealth by opening a gold IRA, an asset that can hedge against the damaging effects of a recession and financial calamity.
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