Life Stage Series: Money Moves in Your 50s

We believe that financial planning is for everyone, no matter what age or stage of life. Money looks different at every stage of life. Our Life Stage Series breaks down what you need to know – from your 20s to your 60s – so you're always one step ahead.

Your 50s are a crucial decade as your retirement shifts from a distant concept to a tangible reality. The decisions you make now will directly shape the quality of your financial life for decades to come. 

Here are some of the smartest moves you can make: 

Get laser-focused on your retirement number

By your 50s, you need a concrete retirement target, not a vague idea. Work out what your desired retirement lifestyle will actually cost annually, and back-calculate how much super and other assets you'll need to fund it. The Association of Superannuation Funds of Australia (ASFA) retirement standard is a useful benchmark for Australian retirees.

Maximise super contributions aggressively 

Take a breath, but this is your last real opportunity to supercharge your super before retirement. Take full advantage of concessional contributions ($30,000 per year) and non-concessional contributions ($110,000 per year). If you have unused concessional cap amounts from previous years, the carry-forward rules may allow you to contribute even more – find out more here. Every extra dollar in super now has a compounding impact on your retirement balance.

Consider a transition to retirement strategy 

Did you know from age 60, you can access your super via a transition to retirement (TTR) income stream while still working? This allows you to salary sacrifice more into super while drawing on your TTR pension to maintain your take-home pay – a powerful tax-effective strategy worth discussing with a financial adviser.

Eliminate all remaining debt

Entering retirement with debt – especially a mortgage – significantly increases the income you'll need in retirement. Make it a firm goal to be completely debt-free before you stop working. If your mortgage is your last remaining debt, throw everything you can at it throughout your 50s.

Downsize strategically

If your family home is larger than you need, now may be the time to start thinking about downsizing. In Australia, the downsizer contribution scheme allows people aged 55 and over to contribute up to $300,000 each ($600,000 per couple) from the sale of their home into super – outside the normal contribution caps. The impact on your retirement savings can be substantial.

Review your asset allocation

As retirement approaches, your investment strategy should gradually shift to reflect your changing risk profile. This doesn't mean abandoning growth assets entirely – you may have a 30-year retirement ahead – but it does mean ensuring you're not overexposed to volatility right before you need to draw on your funds.

Get your estate planning airtight

Review your will, superannuation beneficiary nominations, powers of attorney and any trusts or business succession plans. Super doesn't automatically form part of your estate, so binding death benefit nominations are critically important and need to be kept current. This is not a set-and-forget exercise – you can easily do this online via your super fund’s website.

Protect your income and health

Income protection insurance becomes more expensive as you age, but losing your income in your late 50s – before you can access super – can be financially devastating. Review your cover and make sure it will carry you through to retirement age. Also review your private health insurance to ensure it meets your needs as your health requirements evolve.

Have a clear retirement date in mind

Knowing approximately when you want to retire allows you to plan backwards and identify any gaps. It also helps you make decisions about career investments, super contributions and debt repayment with a clear timeline in mind. Be realistic – many Australians retire earlier than planned due to health issues or redundancy. Based on data from the Australian Bureau of Statistics, in 2024-25, the average age at retirement of all retirees was 57.3 years. 

Build a cash buffer outside super

Super is generally accessible at age 60 (if retired) or 65 regardless. But if you plan to retire before 60, you'll need accessible savings outside super to bridge the gap. Building a cash or investment buffer outside super becomes increasingly important in your 50s if early retirement is on the cards.

Invest in your health and longevity

The link between health and financial wellbeing becomes increasingly direct in your 50s. Chronic health conditions can reduce your ability to work, increase your costs, and shorten your retirement. Investing in preventive health now – exercise, diet, mental health, regular check-ups – is one of the highest-return decisions you can make.

Work with a financial adviser

The complexity of pre-retirement planning – super strategies, tax, Centrelink, estate planning, investment allocation – is significant. A good financial adviser who specialises in pre-retirement planning can be genuinely transformative in your 50s, helping you avoid costly mistakes and optimise every aspect of your financial position.

Things might be slowing down in your 50s but now is not the time to coast – now more than ever, every financial decision counts. The good news is that with focus and the right strategies, even people who feel behind can make remarkable progress in this decade so you can have the retirement you deserve.