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BetterWealth
December 15, 2025
Hitting your 50s can make money worries feel urgent. You might wonder if you have enough saved, how to handle rising healthcare costs, or whether you’re already behind on retirement planning advice for your 50s. It’s normal to feel anxious when the clock feels like it’s speeding up.
BetterWealth focuses on helping people in their 50s turn that stress into a clear, actionable plan so their savings, taxes, and income all work together. Instead of guessing, you can see where you stand and what needs to change. That clarity alone can reduce a lot of the worry.
In this guide, you’ll learn simple steps to evaluate your current situation, boost savings, manage risk, and plan for healthcare and taxes. You’ll also see how to adjust your lifestyle and work with professionals, so your retirement plan fits your real life, not a generic template.
Knowing where you stand with your money helps you plan better for retirement. Take time to look at what you own, what you owe, and what you’ll likely need to cover living costs in retirement. These steps give you a clearer picture of your financial health. It’s not always fun, but it’s necessary.
Start by listing all your assets: savings accounts, investments, retirement accounts, property, cars, and anything else valuable. Be realistic about their current values, not just what you paid.
Next, jot down your liabilities. These are debts like mortgages, car loans, credit card balances, and any other bills you owe. Knowing your liabilities helps you see your true financial position. Write everything down so you can see it clearly.
This helps you focus on what you need to pay off and what you can grow before retirement. It’s easy to skip this step, but it’s worth the effort.
Your net worth is the total value of your assets minus your liabilities. It’s a key number because it shows your current wealth.
Use this simple formula:
Calculation
Example
Total assets
$500,000
Total liabilities
$150,000
Net worth
$350,000 (assets - liabilities)
Update this regularly to track your progress. If you notice your net worth isn’t moving in the right direction, it’s a sign to slow spending or boost savings.
Think about your monthly costs in retirement: housing, food, healthcare, travel, hobbies, taxes. Some expenses, like commuting, may drop, but healthcare often rises.
Make a list of fixed and variable costs. Fixed costs, like mortgage or insurance, stay the same. Variable costs, like dining out or entertainment, can change.
Inflation is sneaky. Prices tend to rise over time, so plan for your expenses to increase each year. Review this estimate yearly so your retirement goals stay on track.
Planning your retirement means knowing what you want and making a clear plan to get there. This includes when you want to retire, how you want to live, and preparing for health costs.
Each choice will affect how much money you need to save and how to invest wisely. There’s no perfect answer, but clarity helps.
Start by choosing when you want to retire. Some people aim for 65 because that’s when Social Security benefits peak.
You might want to retire earlier or later, depending on your health, job satisfaction, or financial situation. Think about how many years you want to spend in retirement.
A longer retirement means you need more savings. If you plan to work part-time after retiring, that will reduce how much you need from savings.
Use a clear target age to set saving goals. If you’re unsure, pick a range like 62 to 67 and plan for the later date. That gives you a safety net.
Figure out what kind of lifestyle you want in retirement. Will you travel a lot, downsize your home, or live simply?
Your lifestyle affects how much money you’ll need each month. Make a list of your expected expenses: housing, food, utilities, hobbies, travel, and so on.
Be honest about how much you’ll spend versus what you spend now. Remember to factor in inflation. Prices usually rise over time, so $3,000 now might cost $4,000 in 20 years.
Healthcare costs often rise as you age. Medicare starts at 65, but it doesn’t cover everything. Plan for costs like prescriptions, dental care, and long-term care. Consider buying supplemental insurance or using overfunded whole life insurance for the extra coverage.
This can help you cover unexpected medical bills. Think about your family health history, too. If certain conditions run in your family, you might need more savings for care.
It’s smart to set aside about 10–15% of your retirement budget for healthcare. This prepares you to handle costs without dipping too far into your savings.
Your 50s are a critical time to boost retirement savings. You’ve got options like catch-up contributions, making the most of 401(k) and IRA accounts, and using employer benefits that can push your savings further.
Knowing how to use these tools can help your money grow faster before you retire. It’s not always easy, but it’s worth it.
Once you hit 50, the IRS lets you add extra money to your retirement accounts. This is called a catch-up contribution.
For example, in 2025, you can add up to $7,500 extra to a 401(k) on top of the regular $22,500 limit. Catch-up contributions apply to IRAs too, allowing an additional $1,000 beyond the $6,500 annual limit.
This is a simple way to increase your savings if you fell behind earlier in life. If you're unsure, ask your plan provider or financial advisor about catch-up rules.
Adding these extra amounts can make a big difference in preparing for retirement, especially since compounding effects increase over time.
Your 401(k) should be a top priority because many employers offer matching funds. Always contribute at least enough to get the full match—it’s free money you don’t want to leave behind.
Review your investment mix. As you near retirement, balance growth and safety by slowly shifting to less risky options like bonds.
Yet, don’t stop growth-oriented investing completely; you need your money to keep growing. IRA accounts provide flexibility.
Consider a Roth IRA for tax-free withdrawals in retirement. If your income is too high, traditional IRA contributions might be deductible, lowering current taxes.
Action List:
Many employers offer benefits beyond just a 401(k). These might include Health Savings Accounts (HSAs), stock purchase plans, or deferred compensation plans.
An HSA can be a great tool if you have a high-deductible health plan. Money saved there grows tax-free and can be used for medical expenses in retirement.
Look into any stock purchase programs your company offers. Buying at a discount can increase your savings efficiently. Ask HR about these benefits so you fully use what’s available. These extra perks can add up and improve your retirement readiness without costing more from your paycheck.
To grow your savings and protect what you’ve built, you need a plan that mixes steady, safe investments with some that have higher growth potential. This way, you aim for growth while avoiding big losses that can hurt your retirement.
In your 50s, it’s important to still seek growth but be careful with risk. You want investments that can increase your money without risking it all.
Think about reducing investments in stocks that can swing wildly. Instead, add more bonds or dividend-paying stocks, which offer steady income and lower risk.
A good balance might be 60% stocks and 40% bonds, but adjust based on how much risk you’re comfortable with. Remember, you have less time to recover from losses than when you were younger.
Spreading money over different types of investments lowers your risk. Don’t put everything into one stock, one industry, or one kind of asset.
Include a mix like:
This mix helps your portfolio stay stable if one area drops. It’s not foolproof, but it’s a lot safer than betting everything on one thing.
As you near retirement, slowly shift your investments toward safer options. Your focus changes from growing as much as possible to preserving your savings.
Start moving more money into low-risk areas like government bonds or cash equivalents. Avoid sudden big changes that can upset your portfolio too much.
Check your asset mix yearly and adjust it so it fits your changing goals. This ongoing attention helps you retire confidently with a reliable income.
Managing your debt in your 50s can help free up money for retirement and reduce stress. Focus on paying down expensive debt, cutting down big loans like your mortgage, and avoiding new large debts that could hurt your future plans.
High-interest debt, like credit cards, can take a big bite out of your budget. Pay these off quickly to save money on extra interest.
Start by listing your debts from the highest to the lowest interest rate. Put extra money toward the debt with the highest rate while making minimum payments on others.
Using strategies like the debt avalanche method helps you reduce total interest faster. If you find this hard to manage or confusing, ask for help. Don’t just let it pile up.
In your 50s, aiming to lower your mortgage or any large loans can give you more financial freedom. If possible, increase payments to reduce the principal faster.
Even small extra payments can save thousands in interest long term. Consider refinancing if it lowers your interest rate or shortens your term without big penalties.
But don’t stretch yourself too thin. Keep an emergency fund and other savings while chipping away at these debts steadily.
Taking on big new debt close to retirement can really shake your financial security. Try to avoid buying cars with loans or opening new credit lines that pile on monthly payments you might regret later.
If you have to make a large purchase, plan ahead and save up first. Living within your means now keeps your retirement income free to cover living expenses and maybe even grow a bit.
To get the most from Social Security and your pension, pay attention to how the benefit options work, when you claim, and how to use spousal benefits wisely. Every choice can change your lifelong income.
You get to pick between different Social Security benefits based on your own work record. Your full retirement age (FRA) is when you receive your full monthly benefit. If you claim as early as 62, you’ll get less. Wait past your FRA, and your benefit rises until age 70.
Pension plans are all over the place. Some pay you monthly for life, others offer a lump sum. You need to know if your pension has cost-of-living adjustments (COLAs) to keep up with inflation.
Look at your benefit statements and estimate what you’ll get monthly depending on when you start. Having these details handy helps you avoid leaving money on the table.
The age you claim Social Security changes your lifetime income. Claiming at 62 can reduce your benefit by up to 30%. Waiting until full retirement age gets you the full amount. Hold out until 70, and you could see up to 32% more each month.
Your pension’s payout schedule might affect when you take Social Security. Some people delay claiming Social Security because their pension covers their early retirement years. Balancing both can really boost your total income.
Try different scenarios with online calculators or talk to a planner. Maybe you’ll claim Social Security late and start your pension early. That works for some, but it depends on your health and what you want your retirement to look like.
Spousal benefits let one partner claim based on the other’s work record, often at half the higher earner’s benefit. This can really help couples where one spouse earns less.
You can claim spousal benefits as early as 62, but only if your spouse has already claimed. Timing both claims carefully can bump up your household income. Sometimes the higher earner delays their claim to grow the benefit, while the other claims spousal benefits early.
If your spouse has passed away, survivor benefits let you claim based on their record, which often pays more than your own. Planning this together matters; a bad claim timing can mean you both get less than you should.
Healthcare might be your biggest retirement expense. Knowing what to expect and prepping early can help you dodge nasty surprises and keep your savings intact.
Start by looking at your health and family history to guess what you might spend. As you age, things like prescriptions and doctor visits usually get pricier.
A rough rule: expect 25–30% of your retirement income to go to healthcare. Don’t forget dental and vision; they’re often only partly covered by insurance.
Track your current out-of-pocket costs for a year to spot patterns. Adjust for inflation and possible health changes. You can also use online calculators for a ballpark number based on your health and where you live.
Medicare kicks in at 65, but signing up isn’t always simple. It includes Part A (hospital), Part B (medical), and optional Part D (prescription drugs).
Decide if Original Medicare or a Medicare Advantage plan fits you better. Advantage plans often bundle extras but might limit your provider choices.
Don’t overlook supplemental policies (Medigap) to fill coverage gaps, especially if you expect high medical bills. Late enrollment can mean penalties, so keep those deadlines in mind.
Long-term care helps with daily activities like bathing or nursing care if you can’t live alone. Medicare usually won’t cover long-term care, so you’ll need another plan.
Look at long-term care insurance or policies that combine coverage with cash value growth. You might also set aside dedicated funds or assets just for these needs.
Think about the level of care you want, costs in your area, and how long you might need help. Planning early can really save you from financial headaches down the road.
Estate planning means making sure your assets end up where you want after you’re gone. It also protects your family from legal messes and high taxes. Doing this now brings some peace of mind and keeps your legacy intact.
Your will spells out who gets your stuff. In your 50s, review and update your will regularly. Life changes—marriage, divorce, new kids—need to be included.
Check beneficiary designations on retirement accounts and life insurance. Those override your will, so if they’re outdated, your assets could end up with the wrong person.
Make sure all your documents match and are legally valid. A lawyer or trusted advisor can help you avoid expensive mistakes.
A power of attorney lets someone you trust make decisions if you can’t. There are two main types: financial and medical.
Financial power of attorney lets your agent handle bills and money matters. Medical power of attorney gives them a say in healthcare decisions.
Without these, your family might have to go to court to help you. Setting them up early keeps your wishes on track and your affairs running smoothly.
Estate taxes can eat into what you leave behind. Planning now means more goes to your heirs and less to the government.
Use tools like lifetime gift exclusions to pass assets tax-free while you’re alive. Life insurance policies can help cover taxes so your estate doesn’t need to be sold off.
Work with a tax-savvy pro to find strategies that work for you. Trusts, charitable giving, and other moves can lower your estate tax bill.
Prepping for retirement means rethinking your money habits, living space, and how you handle major changes. It’s about making practical choices so your savings last and you stay comfortable.
Track your current spending to see where your money actually goes. Focus on essentials like housing, food, healthcare, and transportation. Cut back on non-essentials—do you really need all those subscriptions?
Build a monthly budget that matches your expected retirement income. Add in new costs like extra healthcare or travel. Try to keep your budget flexible so it can shift as prices and your needs change.
Consider how taxes will affect your income. Withdrawals from some retirement accounts get taxed, so plan ahead to avoid surprises.
Ask yourself if your current home fits your retirement life. Downsizing can cut costs like mortgage, taxes, insurance, and maintenance. A smaller place or a cheaper area might free up cash for other things.
When picking a new spot, look for features that’ll make aging easier—single-level homes, safe neighborhoods, and close to healthcare. Downsizing also helps clear out clutter so you can focus on what matters now.
If you’ve got equity in your home, selling or renting part of it could help fund retirement. It’s not just about saving money; it’s about matching your lifestyle to your new goals.
Retirement brings changes way beyond money. You might stop working, shift your social circles, or change up daily routines. Being mentally and emotionally ready is just as important as financial planning.
Build a support network of family, friends, or groups with shared interests. Find hobbies or activities that give you purpose. Planning ahead for health changes by understanding your insurance and care options matters, too.
If you’ll rely on income from investments, pensions, or Social Security, check when and how to claim benefits to get the most out of them.
Having the right financial professionals on your side can make a world of difference in your 50s. Knowing how to pick a retirement planner and stay updated on financial trends gives you more confidence and control over your future.
Find a retirement planner who gets your goals and values. Ask if they’ve worked with people in their 50s and if they focus on retirement strategies. Credentials like Certified Financial Planner (CFP) are a good sign.
They should explain things in plain English and not push products. A solid planner helps you balance saving, taxes, and insurance—and tailors a plan to your life, not just a generic template.
Financial rules and markets change fast, so it pays to stay in the loop. Follow reliable sources, government sites, or trusted finance channels. Understanding tax updates or new retirement rules lets you tweak your plan early.
Sign up for newsletters or catch videos from experts you trust. You don’t have to know everything, but staying aware of key changes can save or grow your money.
Review your plan at least once a year with your financial professional. That way, your strategy stays fresh and fits what’s happening in the world.
Keeping an eye on your financial progress helps you stay on track for retirement. Check how your investments and savings are doing on a regular basis.
Be ready to adjust your goals as life shifts, so your plan always fits your current situation.
Set a schedule to review your finances at least twice a year. This way, you can catch problems early and see if your savings are actually growing the way you hoped.
During these reviews, look at your investments, retirement accounts, and expenses. Ask yourself questions like:
Use tools like spreadsheets or apps to track your progress. If you’re unsure, a financial planner can help you see the bigger picture and adjust your plan as needed.
Life changes, like a new job, health issues, or family needs, can throw your retirement plan off course. When these things happen, update your goals so they fit your new reality.
If your income drops, you might need to save more or work a bit longer. On the flip side, if you get a bonus or inheritance, maybe that’s the time to bump up your savings. Taking care of aging parents or paying for kids’ college can also shift what’s important.
Try not to rush these decisions. Each change might mean tweaking your savings rate, investment mix, or insurance coverage. Keep your plan flexible so it works for you, not against you.
In your 50s, it’s easy to worry about savings, rising costs, and how long your money will last. The right retirement planning advice for your 50s helps you see the numbers clearly and turn that worry into specific steps.
BetterWealth focuses on aligning your savings, income, and protection so your money supports the life you actually want. With a clear plan, you move from guessing to knowing what to do next.
If you feel behind or unsure, you do not have to figure this out alone. Schedule a free Clarity Call to review where you stand and outline simple, practical moves to strengthen your retirement future.
Max out your contributions to retirement accounts like 401(k)s and IRAs. If you’re over 50, look into catch-up contribution options too.
Cut unnecessary expenses and put any extra toward savings. You might want to delay Social Security benefits to boost your monthly income down the road.
Start shifting your portfolio to reduce risk while still letting your savings grow. That usually means balancing stocks with more stable choices like bonds.
Try not to make sudden, risky moves. Instead, review your asset mix and make sure it fits your timeline and comfort level with risk.
Keep in mind how withdrawals from retirement accounts get taxed. Roth IRAs let you take money out tax-free, but traditional accounts usually count as regular income.
Plan for required minimum distributions (RMDs) starting at age 73. It’s worth thinking about ways to reduce your tax bill in retirement, too.
Honestly, it’s never too late. You can change your savings plan, rethink your retirement age, or update your lifestyle expectations.
Reevaluating now gives you more control over your financial future.
Estimate your yearly expenses—housing, food, healthcare, travel, the works. Multiply that by how many years you think you’ll spend in retirement.
Inflation and surprises happen, so don’t forget to include a cushion. Using calculators or talking to a planner can help you land on a more precise target.
Healthcare might just end up as one of your largest expenses in retirement. You'll want to plan for premiums, out-of-pocket costs, and long-term care.
Don't forget about Medicare premiums either. Maybe set aside some funds just for healthcare, or look into insurance like long-term care policies if that feels right for you.
This guide is for educational purposes only and is not tax, legal, or investment advice.
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