Turning 50 is a major life milestone, and it’s also a pivotal point for financial planning. By this stage, many Australians are reaching their peak earning potential but are also preparing for the next phase of life—retirement and financial security. With the right strategies, you can ensure a comfortable future while minimising financial stress.
Let’s Get Straight to the Point
For those short on time, here’s a quick breakdown of the key financial goals to achieve in your 50s:
- Build a cash buffer – Have at least six months' expenses saved in an accessible account.
- Eliminate consumer debt – Pay off credit card debt and other high-interest loans.
- Refine your investment strategy – Focus on stable, long-term investments rather than speculative risks.
- Protect your assets – Update your will, superannuation beneficiaries, and insurance policies.
- Meet your savings targets – Aim for at least seven times your annual income saved for retirement.
- Have money discussions with family – Talk with ageing parents and adult children about financial plans.
- Create a structured financial plan – Outline your work timeline, expected expenses, and estate planning.
Implementing these steps now can safeguard your financial future and give you peace of mind as retirement approaches.
1. Build a Cash Buffer for Unexpected Expenses
Why a Cash Buffer is Essential
Your 50s bring a mix of financial opportunities and challenges. While you may be at your peak earning capacity, your financial obligations can also be at their highest. Many Australians at this stage are juggling multiple financial responsibilities, such as:
- Mortgage repayments – Even if you have made significant progress on your home loan, paying it off completely before retirement should be a priority.
- Supporting children – If your children are in university or just starting their careers, they may still need financial assistance.
- Caring for ageing parents – Many Australians in their 50s help cover medical expenses, aged care, or daily living costs for their elderly parents.
This combination of financial commitments makes having a cash buffer more important than ever. Unexpected events—whether a medical emergency, home repair, or sudden job loss—can put your retirement savings at risk if you are not financially prepared.
How Much Should You Save?
A good rule of thumb is to save at least six months’ worth of living expenses in an accessible, high-interest savings account. This ensures you can cover essential costs without needing to dip into superannuation early, which could result in tax penalties and lost growth potential.
To build your cash buffer efficiently:
- Automate savings – Make a regular direct debit into a dedicated emergency fund.
- Cut unnecessary expenses – Review your monthly budget and eliminate non-essential spending.
- Consider a side income – Extra income from freelancing, consulting, or investing can boost your savings faster.
2. Pay Off Consumer Debt Before Retirement
The Danger of Carrying Debt into Your 50s
While many Australians successfully reduce their debts in their 40s, some still carry credit card balances, personal loans, or car finance into their 50s.
With average credit card interest rates exceeding 19% in 2025, failing to clear these debts can result in thousands of dollars in unnecessary interest payments.
Unlike a mortgage (which builds equity), consumer debt provides no financial benefit and should be paid off immediately.
Practical Steps to Eliminate Debt
- Focus on high-interest debt first – Pay off credit cards and personal loans before tackling lower-interest loans.
- Increase repayments – If you can afford to, make extra repayments on debts to clear them faster.
- Consider consolidating debt – If you have multiple loans, consolidating them into one lower-interest personal loan can simplify repayments.
- Avoid unnecessary new debt – If you still rely on credit cards for everyday purchases, it may be time to reassess your spending habits.
By becoming consumer debt-free in your 50s, you can redirect funds into investments and retirement savings instead.
3. Strengthen Your Investment Strategy
Shifting from Aggressive Growth to Stability
Your 50s are a transition period in your investment journey. While risk-taking may have been necessary in your younger years, now is the time to prioritise wealth preservation.
Best Investment Options for Australians in Their 50s
- Diversified ETFs and index funds – Offer long-term growth with lower volatility.
- Dividend-paying stocks – Provide regular income, which can help supplement your retirement savings.
- Bonds and fixed-income assets – More stable investments that reduce exposure to market fluctuations.
4. Protect Your Assets with Updated Financial Planning
Superannuation and Estate Planning Updates
Your superannuation is a major financial asset, so regular reviews are essential. Ensure your fund’s performance, fees, and investment options align with your retirement goals.
- Check fund performance – Compare returns and fees to maximise growth.
- Consolidate multiple accounts – Reduces fees and simplifies management.
- Adjust risk levels – Shift some funds to lower-risk assets as retirement approaches.
Estate Planning Essentials
Proper estate planning prevents legal complications and ensures your assets go to the right people.
1. Update Your Will
Ensure your will reflects your current assets and family situation. Major life events like marriage, divorce, or having children should trigger a review.
2. Assign a Power of Attorney
A power of attorney (POA) allows a trusted person to manage your finances if you cannot do so. An enduring POA remains valid even if you lose mental capacity.
3. Review Beneficiary Nominations
Superannuation doesn’t automatically go through your will, so ensure binding nominations are current. Also, life insurance policies should be reviewed to confirm the correct beneficiaries.
These steps protect your assets and ensure your financial legacy is handled smoothly.
5. Achieve Your Savings Targets
How Much Should You Have Saved?
By 50, aim to have at least seven times your annual salary saved. If you earn $100,000 annually, your goal should be $700,000 in superannuation, investments, and other savings. The exact amount depends on your retirement lifestyle, expected income sources, and planned retirement age.
Ways to Boost Your Retirement Savings
1. Maximise Super Contributions
- Concessional contributions – Salary sacrifice up to $30,000 annually (taxed at 15%) to reduce taxable income.
- Non-concessional contributions – Contribute up to $120,000 annually (after tax) for faster growth.
- Carry-forward rule – Use unused concessional cap space from the past five years if your super balance is under $500,000.
2. Cut Unnecessary Expenses
- Downsize your home – Reduces mortgage and maintenance costs.
- Limit discretionary spending – Cut back on luxury purchases and frequent travel.
- Clear outstanding debts – Eliminates unnecessary interest payments.
3. Use Tax-Efficient Strategies
- Optimise super withdrawals to minimise tax.
- Leverage government incentives, such as super co-contributions for eligible earners.
- Structure investments efficiently to lower capital gains and dividend tax.
You can increase retirement savings without major sacrifices by making smart contributions, reducing expenses, and optimising taxes.
6. Have Financial Discussions with Family
Talking to Your Parents About Their Finances
Many Australians in their 50s are helping their ageing parents with financial matters, including:
- Aged care planning
- Healthcare costs
- Legal arrangements such as power of attorney
Having these discussions early prevents financial surprises later.
Preparing Adult Children for Financial Independence
For children transitioning into adulthood, it’s vital to teach financial responsibility, including:
- Managing their budgets
- Starting super contributions early
- Avoiding unnecessary debt
These discussions help them become financially self-sufficient, reducing the risk that they will rely on you in retirement.
7. Create a Financial Plan for the Next 10+ Years
Why Planning Now Matters
Your 50s are the best time to map out your financial future and ensure you can retire comfortably. A structured plan helps you forecast expenses, optimise savings, and avoid financial stress in retirement.
Key Elements of a Long-Term Financial Plan
- Retirement timeline – Decide whether you’ll retire early, work part-time, or transition gradually to retirement.
- Expected expenses – Plan for housing, utilities, healthcare, and lifestyle costs to avoid financial shortfalls.
- Medical and aged care – Factor in private health insurance, medical costs, and potential aged care services.
- Debt management – Aim to clear mortgages and other loans before retirement for greater financial freedom.
- Estate planning – Update your will, power of attorney, and beneficiary nominations to protect your assets.
Why a Financial Advisor Can Help
A qualified financial advisor can guide you in:
- Investment strategies – Balancing growth and stability in your portfolio.
- Superannuation optimisation – Using tax-effective contributions to boost retirement savings.
- Tax efficiency – Reducing tax on super withdrawals and investment income.
- Aged care planning – Structuring finances to cover future healthcare needs.
A well-structured plan provides clarity and confidence, ensuring you’re financially secure for the next stage of life.
Conclusion
Your 50s are a time to solidify financial security and ensure a comfortable retirement. Whether building a strong cash buffer, eliminating consumer debt, or updating your investment strategy, taking action today will set you up for a financially stress-free future.
By following these financial milestones, you can retire on your terms and enjoy the rewards of smart financial planning.
By reaching 50, you should aim to have at least seven times your annual salary saved. This includes superannuation, investments, and savings. The more you contribute now, the more financial security you’ll have in retirement.
Clearing credit card debt and personal loans can take 6 months to a few years, depending on your repayment strategy. Prioritising high-interest debt first and making extra repayments speed up the process. If you manage multiple loans, consider debt consolidation.
Maximising concessional contributions (up to $30,000 per year before tax) through salary sacrificing can significantly boost your retirement fund. If you have extra savings, consider non-concessional contributions (up to $120,000 annually) for tax-free growth.
To cover unexpected costs, keeping a cash buffer of at least six months of living expenses in a high-interest savings account is recommended. This ensures easy access while earning returns, preventing the need to dip into superannuation or investments.
It’s never too late to start investing, but your strategy should shift toward stability and capital preservation. Focus on diversified ETFs, dividend stocks, and bonds rather than high-risk investments. A financial planner can help you tailor a low-risk investment plan for your retirement goals.
