Retirement Planning in Your 50s

Your 50s can be one of the most important decades for retirement planning.

Retirement is close enough to start making detailed projections, while you may still have enough time to make meaningful changes to your super, investments and debt.

1. Decide what retirement looks like

Start with the lifestyle rather than the number.

When would you like to retire? Will you travel? Do you plan to help children financially? Will your mortgage be repaid?

These decisions determine how much retirement income you may need.

2. Review your super

Check your current balance, investment strategy, fees, insurance and contributions.

Moneysmart recommends looking beyond your balance alone, including checking fees, insurance and beneficiaries as you assess your super.

3. Consider increasing contributions

Your 50s may provide an opportunity to direct more money towards super, particularly as mortgages fall and children become financially independent.

Depending on your circumstances, strategies could include salary sacrifice, personal deductible contributions, after-tax contributions and potentially unused concessional contribution caps.

4. Get debt under control

Entering retirement with significant debt can dramatically increase the income your investments need to produce.

Develop a plan for your mortgage, investment debt and other liabilities well before your planned retirement date.

5. Model your retirement income

Don't wait until retirement to discover whether you have enough.

A retirement projection can model your super, investments, expected spending, inflation and potential Age Pension entitlement to identify gaps while you still have time to address them.

The earlier you develop a retirement strategy in your 50s, the more options you may have available before you stop working.

General information only. Superannuation and tax strategies depend on individual circumstances and eligibility.