Retirement Playbook: What to Consider in Your 50s

Turning 50 is more than just another milestone birthday—it’s a wake-up call that retirement is no longer a distant concept. For many people, these years represent the “final push” toward building the financial and lifestyle foundation for their future. Your 50s are often your peak earning years, but they can also come with new expenses—college tuition for children, aging parents, or healthcare concerns. That’s why it’s critical to develop a smart, strategic playbook for retirement.

Below are the key areas to consider when planning your retirement in your 50s.

1. Take a Hard Look at Your Retirement Savings

By your 50s, you should have a clear picture of how much you’ve saved for retirement and how much more you’ll need. Experts often recommend having at least four to six times your annual salary saved by age 50, though everyone’s situation is different.

This is also the time to take advantage of catch-up contributions. In 2025, individuals over 50 can contribute an extra $7,500 to 401(k) plans and an additional $1,000 to IRAs. These catch-up provisions can significantly accelerate your nest egg growth in the last decade or so of your career.

If your savings aren’t where you’d like them to be, don’t panic—what matters most is focusing on consistent contributions and investing wisely over the next 10–15 years.

2. Revisit Your Investment Strategy

Risk tolerance often changes in your 50s. While you still need growth to outpace inflation, you also want to protect yourself from large market downturns that could derail your retirement timeline.

This doesn’t necessarily mean shifting everything to bonds or cash, but it does mean reviewing your portfolio to ensure it’s properly balanced. Many people benefit from a mix of growth-oriented stocks, dividend-paying equities, and stable income assets. A financial advisor can help tailor a strategy that balances growth with security.

3. Estimate Your Retirement Income Needs

Retirement isn’t just about having savings—it’s about generating income you can rely on. Begin by estimating how much you’ll spend annually in retirement. A common rule of thumb is that you’ll need 70–80% of your pre-retirement income, though this varies depending on your lifestyle.

Consider these sources of income:

• Social Security benefits (review your statement to estimate what you’ll receive).

• Pensions, if applicable.

• Withdrawals from retirement accounts.

• Part-time work, consulting, or passion projects that generate income.

The goal is to ensure your income sources align with your desired lifestyle.

4. Plan for Healthcare Costs

Healthcare is often the biggest “wild card” in retirement planning. Fidelity estimates the average couple retiring at 65 today will need over $300,000 for medical expenses throughout retirement.

Since Medicare eligibility doesn’t begin until 65, you need a plan for health coverage if you retire early. Options include extending employer coverage through COBRA, purchasing insurance via the marketplace, or delaying retirement until you’re covered.

You should also consider contributing to a Health Savings Account (HSA) if you qualify, as these accounts offer triple tax advantages and can be used tax-free for medical expenses in retirement.

5. Reduce Debt and Simplify Finances

Your 50s are the time to get aggressive about paying down high-interest debt such as credit cards or personal loans. Consider whether you want to enter retirement mortgage-free, or at least with a manageable payment.

Simplifying your finances—consolidating old retirement accounts, automating contributions, and streamlining expenses—can make your transition into retirement much smoother.

6. Update Estate Planning and Insurance

Estate planning isn’t just for the wealthy. If you haven’t already, update or create your will, healthcare directives, and power of attorney. These documents protect your wishes and prevent legal complications for your family.

Insurance also deserves review. You may no longer need as much life insurance if your children are financially independent, but you should evaluate whether long-term care insurance fits your situation. Long-term care can be a major expense, and insurance is often more affordable if purchased in your 50s.

7. Visualize Your Retirement Lifestyle

Retirement planning isn’t only about money—it’s also about purpose. Many people underestimate the psychological shift that comes with leaving the workforce. Start thinking about where you want to live, how you’ll spend your time, and what passions you’ll pursue.

Whether it’s traveling, volunteering, picking up a new hobby, or starting a small business, having a plan for your lifestyle will help ensure retirement feels fulfilling, not empty.

Your 50s mark the transition from “someday” thinking to actionable preparation. With around 10–15 years left before traditional retirement age, this is your chance to fine-tune your finances, prioritize health, and clarify your vision for the future. By taking deliberate steps today, you can set yourself up for a retirement that’s not only secure but deeply rewarding.

Schedule your appontment with me by clicking here. Together we will evaluate your personal circumstances.

Warm regards,

Sharon, Your Safe Money Lady™

Sharon Ben-David

Phone: (954) 261-5200

Licensed Mortgage Broker, Certified Professional Retirement Planning Adviser, and Financial Advocate

Protecting Your Nest Egg, Inc.