Typically, people in their 50s have reached the peak of their salary, and most do not have kids at home any longer. It is the perfect time to pay off debt and build your wealth in preparation for retirement. While it could still be about 12 or more years before you retire, it is not wise to put off your retirement plans any longer.
Concentrate on your retirement funds. Perhaps, you are one of those who still have other obligations, children or grandchildren under your wing. Despite the situation, you have to prioritize your retirement. Ideally, you should have already started stashing retirement funds during your 20’s, but if for some reason you had to put your retirement accounts on the back burner, it’s time to rebuild that nest egg.
Put more towards paying off debt. Debt can cause two things- either you have to delay retirement or suffer a retirement life with too much bills to pay. When you’re in your 50’s, it’s high time that you focus on reducing or eliminating all of your debt, even if you’re saving money for your retirement. You don’t want your retirement savings to go towards interests right? There’s nothing more rewarding than a debt-free retirement wherein there are no mortgage or credit card balances to settle.
Guide your kids to independence. Unless your children are disabled, you have to let them be on their own especially when they’re out of school already. By continually sustaining them, you are not only risking your future, but theirs as well. Teach them how to become financially independent instead of relying on your support.
Review your insurance policies. At this age, you should reconsider your insurance needs. If you still have dependents, make sure that your beneficiaries are named correctly and that you have the right coverage for them if you die prematurely. Meanwhile, if all your kids are independent, perhaps you no longer need a policy, except if you have a large estate. Also check on your health and disability insurances.
Review your investments. It could really give you adequate cushion if you have smartly diversified investments rather than relying on savings alone. While it’s wise to keep your savings intact, you should try to put some spare cash into a good mix of low-risk and high-risk investments, which can be very rewarding in the future. For example, if you’re looking forward to that dream vacation, you can use the money from investment returns instead of taking a huge chunk from your retirement savings.
Plan what to do when you retire. Retirement is not all fun and endless vacation. You need to sort out what kinds of activities or hobbies you are planning to pursue in order to determine how much money you would have to prepare. Perhaps you can include some cheap and worthwhile activities such as volunteer work on your to-do list. Also consider working part-time when you retire. With all the leisure time you have, you might get bored. Not only can a part-time job keep you occupied, but it can also prolong the life of your savings.