Why your 50s are the most critical decade for a retirement reset

Turning 50 is one of life’s greatest milestones, and it can also be a great time to take stock of what the future holds – especially if you’re not sure how (or when) you might be able to retire. By taking a few simple, informed steps, you can spend your 50s enjoying life instead of worrying about your future finances.

It’s never too early to start

Whether it’s speaking to a financial planner or making the most of free resources like Moneysmart, an Australian Government service that simplifies money decisions with independent tools and information, your 50s can be a good time to start planning your retirement.

According to Kimberley, 53, entering her sixth decade came with a side of financial empowerment she’d never experienced before.

“I saw a financial adviser in my 20s, but life got in the way, and I didn’t see the value in the money I was spending back then,” she admits.

After celebrating her 50th birthday, a series of small events inspired Kimberley to get serious about her retirement plans.

“My children were moving out of home, my work was changing and my parents’ health had started to decline,” she explains.

“I had to start asking questions about my mum and dad’s finances, which I had never done before, and I realised they were in quite a good position thanks to their super investments.”

Armed with this insight, Kimberley, who works as an executive manager for an insurance firm, started to reflect on what she wanted her retirement to look like and what age she might realistically be able to retire.

“I knew if I didn’t get my act together, I’d still be working at 70, so I began researching everything I could about superannuation,” she says.

Small changes, big gains

The first step she took was downloading her super fund’s official app. “I hadn’t looked at my super balance for a very long time, so I wanted quicker and easier access to my account,” she explains. “After that, I set up a free meeting with my fund to talk about my super and to better understand my portfolio.”

While the meeting was informative, it left Kimberley with more questions than answers about what she should do next. In fact, the more she researched, the more confused she felt – until she came across the Moneysmart superannuation calculator.

“Being able to see how much super my husband and I would have at retirement compared to how much we’d actually need was really enlightening,” Kimberley explains. “It forced us to think about different scenarios, such as what retirement would look like if we still had a mortgage and also encouraged us to consider how realistic our lifestyle and savings goals were.”

After deciding she’d like to retire at 63, Kimberley began making small changes to maximise her super balance. “One of the first things I did was search for missing super for both myself and my husband,” she explains. “We’d both had other jobs in the past, and we realised those super accounts were being eaten away by fees.”

After checking if she’d lose any benefits by bringing all her super accounts together, she decided to consolidate. Next, she started making extra small contributions to her super – with the aim being to grow it faster. She also chose to meet with a financial adviser to go over her budget and future plans.

“I have an investment property, and while I could sell that and take care of my mortgage, we realised it would be better for me in the long term to keep working for the next 10 years,” she explains.

Although she loves her job, Kimberley says she’s looking forward to retirement now that she’s more engaged with her finances. “Turning 50 was the best time to start thinking about my super,” she says. “I really needed to look at the bigger picture because I don’t want to miss out on anything in the future. I want to travel, spend time with our grandkids and actually enjoy life.”

While she admits she hasn’t yet reached her retirement savings goal, Kimberley notes she’s in a much better position now than she was before entering her 50s. “I feel so much more knowledgeable,” she says. “I can share my learnings with my sons, and I can ask informed questions about how to take my super even further. This next chapter isn’t daunting. It feels exciting because I know a comfortable retirement is achievable.”

Ready to make sense of your retirement? Visit the Australian Government’s Moneysmart website. It offers free, independent, easy-to-use tools and resources to help you to understand your options and make more informed decisions.

Any advice provided in this article is of a general nature. This information does not take your personal objectives, financial situations or needs into account. You should consider its appropriateness to your circumstances before acting on this information.