Master your finances with the top money tips for a secure and prosperous future!
Hitting your 50s can be a significant turning point for many reasons—your priorities shift, your lifestyle changes, and your perspective on money often deepens.
If you’re wondering what to focus on to ensure a financially sound future, here are the five best things to know about money when you’re over 50.
1. Superannuation is Key—Maximise It
Your super is likely your biggest asset outside your home, and now is the time to maximise it. While retirement may still be a few years away, it’s essential to take a close look at your superannuation and consider making additional contributions if you can. The tax benefits of voluntary contributions can add up, and small increases now could make a big difference in your retirement income. If you’re unsure of where your super stands, consult your fund and consider getting professional advice.
2. Review Your Investment Strategy
As you get closer to retirement, your appetite for risk may naturally decrease. However, that doesn’t mean your investments should be stagnant. Now is the time to review your portfolio and make sure it aligns with your current financial goals. Whether it’s shares, property, or managed funds, ensuring your investments are diversified and well-suited to the stage of life you’re entering is critical. Speak to a financial adviser to reassess your risk tolerance and make any necessary adjustments.
3. Debt Reduction is a Priority
Carrying debt into retirement can limit your options and create unnecessary stress. Whether it’s a mortgage, credit card debt, or personal loans, now is the time to develop a plan to pay it down. If you’re still paying off your home, consider whether it makes sense to make extra repayments or downsize. The key is to enter your retirement years with as little debt as possible, giving you the freedom to enjoy the next chapter of your life.
4. Think About Your Future Healthcare Costs
As we age, healthcare becomes a more significant consideration, and unfortunately, it can also become a significant expense. It’s essential to have a plan for managing health-related costs, whether through private health insurance, setting up a savings buffer, or looking into long-term care options. Planning for these costs now can help you avoid financial surprises down the road.
5. It’s Never Too Late to Learn
Many people think that once they hit 50, their financial habits are set in stone. But it’s never too late to improve your financial literacy and make smarter money decisions. Take the time to educate yourself on any gaps you might have—whether that’s understanding how to invest, learning more about super, or finding out how to make the most of government benefits like Centrelink.
And when planning for the next stage of your life, here are the Five Money Tips Things to Consider Before You Retiring. And learn if you should get insurance through your superannuation fund here.
