How Smart 50-Somethings Are Securing Their Nearing Retirement Right Now

Your fifties are an exciting time when it comes to your retirement savings plan. Retirement now feels like less of a faraway goal and more like a finish line that you can see within your reach. While you're likely not planning on leaving the workforce just yet, you're already dreaming of days spent devoting time to your hobbies, your family, and possibly philanthropy.

Odds are that you feel the most powerful you've ever felt when it comes to your financial future. You've planned and saved, and the benefits you'll reap from this are on the horizon. Even if you feel a little behind, chances are you also feel the most competent you've ever felt in your professional life.

Your fifties bring both urgency and opportunity to your retirement strategy. Here are some important things to keep in mind when it comes to retirement planning in this stage of life.

What to keep in mind as you enter the home stretch

This is the time to start imagining what your ideal retirement looks like. Do you plan to simply relax and spend time with family? Do you plan to never truly retire, and perhaps continue working in a part-time capacity? Will you stay in your current home, or do you plan on downsizing?

It's important to think of this period less as the end of your time in the workforce, and instead view it as a transitional period. After all, you still might be several years away from actually clocking out for the last time. But this is a good time to get clear on what you envision for your retiree lifestyle and how your current savings would or wouldn't support those goals.

It's not too late to catch up

Perhaps your retirement savings plan has not been as robust as you would have liked. Or maybe you did everything according to plan but feel like you're unprepared to support yourself in an increasingly expensive world. No matter your position, when planning for retirement at age 50 and beyond, you can take advantage of catch-up contributions.

Catch-up contributions allow individuals age 50 and older to contribute more to their 401(k) and IRA accounts than what's allowed for younger people. While the maximum amount of catch-up contributions fluctuates from year to year, the limits for 2025 are $7,500 for 401(k) accounts ($11,250 for those aged 60-63) and $1,000 for Roth IRAs. Even if you aren't able to contribute the maximum additional amount, putting extra money into these accounts now will help you to maximize your retirement savings during the final years of your time as a working professional.

Plan for a healthcare gap

People often overlook the potential healthcare gap they may face if they're planning to retire before 65, when you become eligible for Medicare. If you're planning to retire before age 65, you'll need to make a plan for your healthcare coverage. Some options include:

• Private health insurance, but this can be expensive

• Your spouse's employer plan if they plan to continue working

• COBRA coverage from your employer, which is continued access to the same coverage you have now after you've left the company. Eligibility may vary, so it's important to speak to your HR rep if you plan to pursue this as an option

• A Health Savings Account (HSA), if you have one. HSAs work best when you maintain a sufficient balance to handle both unexpected health emergencies and routine medical expenses. However, relying solely on an HSA for coverage could leave you vulnerable to high out-of-pocket costs for major medical expenses

Don't risk going without coverage during any gap years between your retirement and your Medicare eligibility. Even if it's a small window, you don't want to find yourself paying out of pocket for healthcare in case of unexpected medical needs.

Retirement planning goes beyond your retirement savings

Securing your financial future isn't just about making contributions to your 401(k) and ensuring your retirement accounts are in order. Savvy retirement planning involves looking at all of your finances in terms of how they are set up to accommodate you in your later years. For example, you might find yourself more risk-averse in your investments, which could require you to rebalance your portfolio and focus on more stable financial products.

Take this opportunity to update your beneficiaries and will—it's a simple way to ensure your hard-earned savings will benefit the people you care about most. Your fifties are also the perfect time to tie up any loose financial ends, pay off lingering debts, and get a clear picture of all your assets. Think of this decade as your chance to set yourself up for a seamless transition into retirement. You're not rushing toward the exit, but you're creating the financial foundation that will give you incredible freedom and peace of mind when the time comes.

Think in terms of income, not just in terms of withdrawals

Your goal in retirement is to enjoy a monthly income from the money you've saved, not just withdrawals whenever you need them. This is the time to change your mindset from "what's the maximum amount I can save?" to "what income will I have each month?" One of the best ways to get a clear vision of this is consulting a financial advisor who will be able to paint a picture of what your monthly income will look like, based on all of your combined accounts and Social Security. They can also help you determine which accounts it will be wisest to draw from first, and whether or not you're on track in this decade of your life to meet your monthly retirement income goals.

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