A personal perspective on what every woman needs to know as she enters her silver years.
As we hit our 50s, our perspectives on life, family, health, and money start to evolve. It’s a time when we often prioritise setting ourselves up for a fulfilling, secure future. In my years as a money educator, I’ve learnt that there are three key insights every woman over 50 should understand about money. These insights can empower you to make informed decisions, reduce financial stress, and bring clarity to your financial journey.
1. Understand Your Financial Health
Knowing exactly where you stand financially is crucial as you look toward the future. This is about more than just tracking your bank accounts; it’s about understanding your entire financial picture, including superannuation, investments, debts, and future income streams. If you’re married or in a long-term relationship, it’s essential to have a clear grasp of joint finances and ensure you’re on the same page about retirement goals and priorities.
Start by assessing:
- Your income sources: This includes your current income, superannuation balance, potential pension entitlements, and any other investments or assets that can generate income.
- Your debts: Understanding your debt load and knowing how it fits into your overall financial picture can help you make strategic decisions around repayments and interest management.
- Living expenses: This includes current costs and projected retirement expenses. Knowing this helps you better plan for the lifestyle you want to maintain.
By taking the time to understand your financial health, you’ll feel more in control and better prepared to make decisions that serve your future goals.
2. Plan for Longevity
It’s a fact that women tend to live longer than men, often outliving them by several years. This means that our retirement savings need to last longer. Planning for longevity is about preparing financially for the possibility of living into your 90s or even beyond, and ensuring that you don’t outlive your money.
Here’s how to do it:
- Review your superannuation: Make sure your super is invested in a way that aligns with your goals and risk tolerance. You may still have time to grow your super balance by contributing more or by adjusting your investment strategy.
- Consider health and aged care costs: These are expenses that may become significant in later years, so think about how you’ll cover these costs. Look into insurance options, as well as any government benefits that could support you down the line.
- Think about your living arrangements: Consider if downsizing or relocating could free up funds or lower your cost of living, giving you more financial flexibility. If you prefer to stay in your current home, be mindful of ongoing upkeep costs and any needed renovations to make it accessible as you age.
Planning for longevity will ensure you’re set up financially for the years ahead, helping you maintain peace of mind and a high quality of life.
3. Set Boundaries and Goals with Family Money
Family finances can be complicated, especially as adult children or even grandchildren come into the picture with their own needs and expectations. As women, we’re often inclined to help our loved ones financially, but it’s essential to set clear boundaries to protect our own future.
To achieve this:
- Prioritise your own financial stability: While helping family is admirable, make sure it doesn’t compromise your own financial security. Your retirement and health needs should come first.
- Discuss inheritance and financial support: If you plan to support family members or leave an inheritance, consider setting expectations now. Open discussions about money can prevent misunderstandings and clarify what’s realistic for everyone.
- Know when to say no: It’s okay to say no to financial requests if they’ll put you in a tough spot. It can be hard, especially as a parent or grandparent, but protecting your financial future is essential.
Setting boundaries and realistic expectations around family finances can relieve stress and make it easier to prioritise your goals. It’s not selfish to look out for yourself; it’s essential for your own peace of mind and wellbeing.
Moving Forward with Confidence
The journey to financial security over 50 can be complex, but with a clear understanding of your financial health, a plan for longevity, and set boundaries with family, you can make choices that support your happiness and stability. Making these three areas a focus can be transformative, setting you up for a fulfilling and secure future.
Take time to revisit these steps regularly and, if needed, seek professional advice to ensure you’re on track. Your 50s can be a powerful time of self-investment and empowerment, making the next phase of life as enriching and enjoyable as possible.
And as you enter your silver years, here are The Five Best Things to Know About Money When You’re Over 50. And for more love tips, here is our guide for How to Think About Money in New Relationships over 50.
