Entering your 50s is a time for setting up a solid financial future and making crucial decisions about retirement. From reassessing lifestyle goals to optimising investments, superannuation, and estate planning, this guide covers the top financial considerations for Australians in their 50s. Read on to discover how smart planning now can help you maximise freedom, security, and peace of mind for decades to come. Here are 6 questions to consider:

What sort of lifestyle?

Life can often be so busy that there’s little time to consider personal choices—children’s school and university fees, mortgage payments, and work pressures tend to take priority. But between the ages of 50 and 60, you may finally have the opportunity to think about what you and your partner truly want for the next few decades.

How much do you need in retirement?

The amount you’ll need for retirement largely depends on your lifestyle. Setting a realistic budget is a crucial step toward reaching your retirement savings goal. Will you have enough invested to support your retirement, which could span 20 to 30 years?

Are your investments suitable?

Now is the time to make sure your investments are optimised and aligned with your goals. Reviewing your portfolio can help confirm that it still includes the most suitable assets for your situation.

If you have life and income insurance policies, consider whether the coverage still meets your current needs. While it’s wise to avoid paying for unnecessary coverage, be cautious about cancelling policies as you approach an age when they might be essential.

Have you considered using the equity in your home to build your wealth?

Accessing home equity can be an effective way to start or grow an investment portfolio. By using your home’s equity to borrow and invest in income-producing assets—like managed funds, shares, or investment property—you may be eligible for a tax deduction on the borrowing costs, as these investments generate taxable income. This tax benefit can help offset the cost of borrowing, making your investment strategy more efficient.

Are you taking full advantage of superannuation?

Superannuation is one of the most tax-efficient ways to build retirement savings, providing both capital and income for your retirement years. Making the most of superannuation can significantly impact your retirement goals; however, it’s essential to stay informed of the various rules and regulations that govern these investments.

Have you planned beyond your lifetime?

In your 50s, your family dynamics may be evolving—perhaps with the arrival of grandchildren or complex family structures due to remarriage. Taking time now to consider how you want your assets distributed can spare loved ones future distress. Remember, life insurance payouts and superannuation benefits don’t always form part of your estate and may need separate instructions outside of your Will. Planning ahead can help ensure your wishes are respected and reduce potential complications for those you leave behind.

With all of these points to consider, the first step in updating your financial plan may be the hardest – but it is also the most rewarding.

To make the most of your 50s, consider seeking guidance from a financial adviser, accountant, or tax agent to ensure your financial plan is tax-efficient and well-suited to your future goals. Start planning today to secure a financially stable future. Contact us if you need any assistance.