Important financial goals in your 50’s

Dr. Deepti Dwivedi

There’s a time in life where you have the best opportunities. You’ve gone through your ups and downs, highs and lows. With age comes wisdom! Mid-life is a time to enjoy your life with all the knowledge you have gained and money you’ve earned, but it’s also filled with financial challenges. You might be paying heavily for college fees; or running out of time before retirement. Here are some goals you must strive to achieve in your 50s:

  • Clear pending loans

Pay off your loans before you retire so that at the time when it’s too late, you won’t have to worry about paying them with money from your retirement fund. If this is what we are told in our 50’s then indeed, by 60, there should be no worries of loan payments. If loans have been taken to finance the higher education of your children, you should seek a transfer for the loan to your children as soon as they graduate and start earning to relieve yourself of loans.

  • Concrete retirement planning

It is often misconstrued that you only need to worry about retirement once is close. That couldn’t be farther from the truth! People often miscalculate how much money it takes to live out everyday living expenses during retirement. They end up being way higher than most expect them to be without careful planning. But if done right and thoroughly planned ahead of time, then retiring can be very lucrative.

  • Save up for significant future expenses.

If you want to retire when the time comes, it is not wise to spend a massive amount of your money on weddings and other expenses for your children. They will have their income soon enough that they could afford these things themselves, so rather than risk ruining everything by raiding retirement funds too early in life, create a separate fund for this and save up now. At the same time, there’s still plenty of opportunities left.

  • Reduce unnecessary expenditure

As you step into your 50s, the number of dependents in your lives starts to drop. As a result, we have more money that can be saved and spent on retirement funds because fewer people rely on us for financial support. Although your income continues to flow in, one doesn’t need to be rich to live a life of luxury. As long as you limit your spending on things that depreciate, like houses and cars, you can put away tons of cash for the future!

  • Health Insurance Coverage

As you age, medical emergencies become more and more common. And with rising health care costs, it becomes harder to cover the cost of these emergency procedures without risking bankruptcy. The best way to make preparations for this is by boosting your current insurance plan or buying a new one that includes top-up policies.

A comfortable retirement is possible if you plan wisely in your 40s. The decisions you make will dictate how comfortable and easy retired life will be. You might have to work harder now than before, but it’s worth it because the 50s is a phase where you don’t need as much money to live anymore, so put aside more savings every month. The ’50s are an exciting decade because now that all of life’s obligations have been fulfilled, it’s time to indulge yourself!