4 Areas of Focus in Your 50s Before Retiring
Your 50s are a crucial planning decade, arguably the most important for shaping your retirement years. Let’s talk about what you need to do to be financially successful in your 50s.
At this point, you’re likely in your peak earning years, retirement is no longer a distant goal, and the financial decisions you make now will set the tone for the rest of your life. This is the time to be intentional, strategic, and proactive.
Here are four key things to prioritize in your 50s to get on the right path toward a confident retirement.
1. Maximize Your Retirement Contributions
If you feel behind on savings, you're not alone. The good news is, your 50s come with a built-in opportunity to catch up.
Once you hit age 50, you're eligible for “catch-up” contributions to most retirement accounts. For example:
In 2025, you can contribute an extra $7,500 to a 401(k), bringing your total annual limit to $31,000.
For IRAs, you can add $1,000 more than the regular limit, allowing you to contribute up to $8,000 total.
This is particularly valuable because many people in their 50s are at their highest income levels. Redirecting a portion of that income into retirement savings (while also getting potential tax advantages) can make a dramatic difference over the next 10–15 years.
And I encourage you to not just stop at retirement accounts.
A taxable brokerage account can also play a strategic role. While you won’t get the upfront tax deduction, these accounts offer:
Greater flexibility (no early withdrawal penalties)
Favorable tax treatment on long-term capital gains
Another source of retirement income that can be drawn tax-efficiently
2. Prioritize Your Health (Today!)
We tend to talk about retirement in financial terms, but your health will define your lifestyle as much as your financial position.
Healthcare costs are often one of the largest and most unpredictable expenses in retirement.
The healthier you are heading into retirement, the more control you'll have over those costs, and the more likely you’ll be able to enjoy the things you’re planning for.
After all, I’d argue that it’s not about “how many years we live”, but about “how many ‘good’ years we live”.
A few health-related considerations:
Staying active: Regular walking or light exercise supports heart, joint, and mental health.
Eating a balanced diet: Nutrition directly impacts energy, weight, and disease prevention.
Managing stress: Chronic stress can erode physical health over time.
Getting consistent, quality sleep: Often overlooked, but critical for everything from memory to immune function.
The above may not come as a surprise but they are so important. Prioritize these things because they become more crucial the older we get.
If you need inspiration, look into the concept of “Blue Zones”. These are regions of the world where people routinely live into their 90s and 100s with strong health. The common thread? Daily movement, strong social ties, and a purpose-filled lifestyle. That’s something to aspire to in retirement.
3. Build a Detailed Retirement Roadmap
Saving is one piece of the puzzle. Knowing how to spend your money in retirement is another. Your 50s are the right time to begin shaping your withdrawal strategy, tax approach, and income plan. A good plan should cover:
Retirement Income Strategy
Determine which accounts to tap first (taxable, tax-deferred, Roth).
Analyze when to begin Social Security to optimize lifetime benefits.
Consider how to create predictable income while maintaining growth potential.
Tax Planning
Roth conversions may make sense if you’re in a lower tax bracket now than you will be later.
Avoiding high taxes in retirement is about smoothing income, not just deferring it.
Investment Allocation
Your portfolio may need to shift from growth-focused to a more balanced or income-oriented allocation.
But don’t get too conservative too soon.. your retirement may last 30-40 years and you don’t want inflation eroding your retirement dollars.
Running simulations or using retirement planning software can help you test assumptions and understand your retirement plan and the controllable and uncontrollable risks that we all face.
Better yet, working with a Certified Financial Planner™ professional can ensure the plan is in-depth and personalized to your core values.
4. Make Sure Your Estate Plan Is Current and Coordinated
Estate planning isn’t just about passing on wealth; it’s about protecting your loved ones and ensuring your wishes are carried out after you’re no longer here.
By your 50s, your financial life has likely grown more complex. Your estate plan should reflect that.
Make sure the following are up to date:
Will: Outlines how you want your assets distributed.
Power of Attorney: Designates someone to handle your finances if you’re incapacitated.
Healthcare Directive (Living Will): Lets someone make medical decisions on your behalf if you’re unable.
Beneficiary Designations: On IRAs, 401(k)s, and life insurance, it’s crucial that you name beneficiaries appropriately. The beneficiaries on these accounts override your will, so ensure that they are listed correctly.
Revocable Living Trust (if applicable): Can help avoid probate and streamline the transition of assets.
If you’ve been divorced, remarried, or had children since your last update, it’s especially important to revisit your documents. You don’t want outdated instructions unintentionally causing confusion or conflict.
Don’t Delay!
Your 50s are the ideal time to get ahead of retirement, while there’s still time to course-correct, optimize, and build momentum.
By focusing on your savings, health, big-picture plan, and estate now, you’re not just preparing for retirement. You’re creating the freedom to retire on your terms.
If you haven’t taken a fresh look at your retirement strategy recently, now is a great time to start!
Have any questions about what you’ve read? Let’s talk about them!
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