Gain financial security in your fifties with these five money tips.
Your 50s are a unique time of life, a period when many of us have spent decades prioritising the needs of others—be it children, partners, or even our careers. Now, it’s a good time to focus on you and set up your future.
As someone in my 50s, I know firsthand that with the right approach, this can be an empowering decade to take control of your financial wellbeing. Here are five essential things every woman should know about money in her 50s.
1. Understand Your Superannuation
Your super will likely be a significant source of income in retirement. It’s vital to know how much super you have, where it’s invested, and if it aligns with your retirement goals. Many women have less super than men due to taking career breaks or working part-time for caregiving responsibilities.
It’s crucial to review your superannuation balance and consider strategies to boost it, such as making extra contributions or choosing a more growth-oriented investment option.
2. Plan for Retirement and Beyond
Retirement might still feel like it’s a way off, but it’s never too early to start planning. Think about what kind of lifestyle you want in retirement and how much income you’ll need to sustain it. Consider the costs of healthcare, travel, hobbies, and daily living.
Beyond retirement, estate planning is also crucial—make sure you have a valid will, an enduring power of attorney, and consider setting up trusts or naming beneficiaries. Planning now means less worry later and more time to enjoy the freedom your 50s can bring.
3. Protect Your Income and Assets
With so much already invested in your life and family, it’s important to protect your income and assets as you approach retirement. Make sure you have adequate insurance, such as income protection, life insurance, and total and permanent disability (TPD) insurance.
These coverages safeguard you and your family against unforeseen circumstances. Review your insurance policies regularly or after significant life changes to ensure they meet your current needs. Consulting an insurance specialist can provide you with peace of mind and the right protection.
4. Manage Debts Wisely
Many of us reach our 50s still carrying debt, whether it’s a mortgage, credit card debt, or personal loans. It’s essential to develop a strategy to manage or eliminate these debts as you approach retirement.
Prioritise paying off high-interest debt first and consider consolidating loans to reduce your interest payments. Aim to reduce or eliminate debt to maximise your financial flexibility in retirement. Remember, reducing debt is a step towards focusing more on you and less on financial worries.
5. Stay Informed and Seek Advice
In your 50s, it’s essential to stay informed about your finances and seek advice when needed. Financial landscapes change, and staying educated can help you make the best decisions for your future. Regularly review your financial situation, attend seminars, read up on financial news, and don’t hesitate to seek professional advice. Engaging in conversations about money with friends, family, or a financial adviser can also help you feel more confident about your financial future.
As the cost-of-living crisis continues to strain many Australians, learn these 5 Essential Tips to Help Australians Manage their Personal Finances. And as you enter your silver years, here is How to Avoid the Biggest Money Regrets in Your 50s.
