How to plan your finances in your 50s

Published on: May 11th, 2022

In your 50s, you’ll often experience significant shifts in your lifestyle, goals and values. While your career may remain important, as your life changes, you’ll likely be thinking about what’s next. You might be preparing for life in an empty nest and starting to shift the focus back to being on yourself and your lifestyle.

While you may be planning for retirement, it’s also important to ensure you can enjoy your lifestyle today.  At Apt, we call this living for today, while planning for tomorrow.  Here are some of the areas you can consider to get the balance right.

Living for today….

Financial goal: Giving adult children a head start – You may want to think about how you can support your adult children to get a head start, whether that’s about paying for university, helping them move out of home, contributing to a wedding or helping with a house deposit.

Super: Reviewing your superannuation investments – As retirement is now approaching a decade away, staying on top of your super is critical. You should have already structured your super to weather financial storms but if you haven’t, it’s not too late.

Values: A changing lifestyle– If you have children, they are likely starting to make the move towards independence, and this will free you up to think about what you want out of life.  This could be about a move, downsizing your property or just doing more of what you enjoy.

Financial goal: Paying off your debts – You are likely moving towards having less debt and as your working life is nearing an end, it’s important to focus on this.  It’s common in this decade to receive inheritances and thinking about how you use this to best effect is a must.

Philanthropy:  Supporting causes close to your heart – Your philanthropy may continue to be about financial contribution, and you may consider leaving a bequest in your will as part of your legacy.  As your children leave home, you may also find yourself with more time to return to volunteering.

…planning for tomorrow

Financial goal: Making more concrete retirements plans – This is about understanding how much you will need to retire, what income streams you will have and what you want out of retirement.  You can download our roadmap here.

Career: Planning your exit – Now is the time to think about how and when you want to leave the workforce. If you’re a business owner, this might be about your exit strategy or if you are an employee, your transition to retirement strategy.

Super: Reviewing your strategy – With retirement so close, it’s important to think about your future income streams and the role your super will play.  Your strategy will likely move to a more defensive one as you no longer have the time in the workforce to make up for any significant losses.

Protecting your (family’s) future: Reviewing estate plans – As your lifestyle changes, it’s important to review your estate plans and make sure that your will is up to date.  As children reach adulthood, your family may grow with marriages and grandkids, so making sure your plans are up to date is a must.

Getting expert advice:  From your retirement planning to your estate plans, investments and property, expert advice from a financial planner who understands you and your family can help you achieve your goals.  Get in touch with Apt today to find out how we can help you live for today, while planning for tomorrow.

Read Next:  How to plan your finances in your 60s and beyond

General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.