Turning 50 can prompt reflection—both personally and financially. With retirement on the horizon, many people begin asking: “Am I really on track?”

For some, the answer may be uncertain. Life events like prioritizing children’s education, managing a mortgage, or navigating medical expenses can shift focus away from retirement savings. Others may have experienced career changes or delays in starting their investment strategy, and it’s important to consult a tax advisor to ensure the best approach to these financial decisions.

The good news? Your 50s offer a meaningful opportunity to reassess your financial position and adjust your approach with legal advice. With thoughtful planning and action, you can position yourself more confidently for the years ahead.

Why Age 50 Matters Financially

This stage of life brings several unique advantages and considerations:

• Catch-Up Contributions: The IRS allows additional contributions to retirement accounts beginning at age 50—offering a way to increase savings during higher-earning years.
• Peak Earnings Potential: Many individuals earn their highest incomes during their 50s, which can create room to allocate more toward long-term goals.
• Lifestyle Transitions: Children leaving home or paying off a mortgage can reduce expenses and free up cash flow.
• Planning Window: With 10–15 years until retirement for many, there’s still time to make adjustments—but delaying action may limit flexibility.

Step 1: Evaluate Your Financial Position

Begin by reviewing where you stand today. Consider:

• Total retirement savings across accounts
• Anticipated living expenses in retirement
• Debt obligations, especially high-interest balances
• Social Security benefit estimates
• Diversification of your investment portfolio

A financial advisor can help project future income versus expenses to identify whether your current path supports your goals.

Step 2: Leverage Catch-Up Contributions

For 2025, contribution limits for those age 50 and older include:

• 401(k): $30,500 total ($23,000 base + $7,500 catch-up)
• IRA: $8,000 total ($7,000 base + $1,000 catch-up)
• Health Savings Account (HSA): $1,000 catch-up (if age 55+) in addition to base contributions

Automating contributions where possible can support consistency and simplify the process.

Step 3: Address High-Interest Debt

Reducing or eliminating high-interest debt, such as credit cards or personal loans, can improve cash flow and reduce financial strain in retirement, especially for those relying on a fixed income.

Strategies may include:

• Paying down balances with the highest interest first
• Considering refinancing options, where appropriate
• Avoiding new debt for discretionary expenses

Redirecting these payments into savings can help reinforce long-term progress.

Step 4: Review Your Investment Strategy

Balancing growth potential and downside protection becomes increasingly important in your 50s.

Key considerations:

• Are your investments aligned with your risk tolerance and time horizon?
• Is your asset allocation diversified across asset classes?
• Have you evaluated tax efficiency (e.g., Roth accounts, tax-loss harvesting)?

As retirement nears, asset preservation becomes a more central part of investment planning—but maintaining growth remains essential to support income needs over a potentially long retirement.

Step 5: Plan for Healthcare Costs

Healthcare often represents a significant expense in retirement. Fidelity estimates that a 65-year-old couple may need over $300,000 to cover healthcare expenses throughout retirement, including qualified medical expenses.

Consider the following:

• Maximizing HSA contributions (if eligible)
• Reviewing coverage options, including Original Medicare, Medicare Advantage, Medicare Part D, and Medigap plans
• Exploring long-term care coverage while premiums may still be more affordable

Incorporating healthcare costs into your long-term plan adds resilience.

Step 6: Identify Opportunities to Save More

Redirecting education-related expenses once children finish school in the early years.

• Downsizing your home or reducing fixed housing costs
• Cutting discretionary spending on travel, vehicles, or subscriptions
• Redirecting education-related expenses once children finish school

The goal is not to eliminate enjoyment—but to better align spending with long-term priorities.

Step 7: Evaluate Social Security Timing

Social Security is a foundational income stream for most retirees. The age at which you claim benefits affects the monthly amount:

• Age 62: Early claim, reduced benefits
• Full Retirement Age (FRA): Full benefit (typically age 67)
• Age 70: Delayed claim, increased monthly benefit

The optimal timing depends on factors like health history, income needs, and other available assets. A financial professional can help assess trade-offs based on your situation.

Step 8: Build Your Final Stretch Plan

Bringing all elements together into a coordinated retirement plan can help create clarity and direction to meet your financial goals. Consider:

• Target retirement age
• Expected income sources (401(k), IRAs, Social Security, pensions, etc.)
• Projected expenses (including medical care and lifestyle needs)
• Estate or legacy planning preferences

This plan should evolve and reflect your values as much as your finances.

The Bottom Line

Entering your 50s without a perfect retirement plan is more common than you may think. The key is taking action now—making use of available tools, reviewing priorities, and aligning your strategy with your personal retirement goals and individual circumstances.

Working with a financial advisor may help you evaluate options and develop a plan that supports your vision for retirement—whether it’s five years or fifteen years away.

How TruNorth Can Support Your Planning

TruNorth assists individuals in their 50s and beyond with:

• Assessing retirement readiness and cash flow projections
• Evaluating contribution and investment strategies
• Integrating debt, healthcare, and income considerations into retirement planning
• Coordinating timing strategies for Social Security and other benefits

Our goal is to help clients make informed, practical decisions based on their unique goals and needs. Schedule your complimentary Retirement Reset Consultation today—and take control of your financial future

Disclosure

This material is for informational purposes only and does not constitute investment advice or a recommendation. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. Resolute Capital, LLC, dba TruNorth Advisors, is a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply a certain level of skill or training.