Top tips for managing money in your 50s

Managing money in your 50s is all about enjoying everything you’ve worked for, while planning for what comes next.

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 yourself and your lifestyle.

While you may be planning for retirement, it’s also important to ensure you can enjoy your lifestyle today. Call it “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 teen-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 as close as 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. Getting this sorted should be a key priority of managing money in your 50s.

Values: A changing lifestyle

If you have children, they are likely starting to make the move towards independence. 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 (or start) 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 a 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 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.

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This is an edited version of an article that originally appeared on Apt Wealth Partners and is republished here with permission. This article contains general information only. This should not be relied on as independent finance or tax advice. If you are after specific professional advice, speak to your registered tax agent/financial advisor or reach out to Apt Wealth Partners.