10 Financial Benchmarks To Hit Before 50 To Set You up for Retirement

Turning 50 isn't just another (dreaded) birthday. The age marks a major milestone for your physical well-being and your wallet, making it a good time to conduct a financial review.

At this age, you should be balancing debt freedom, strong savings, and future-focused planning.

If you're approaching 50 and haven't hit these goals yet, don't worry — it's not too late. Now's the time to rethink your financial priorities. Here are 10 key benchmarks to aim for before the big 5-0.

By your 50s, student debt should be behind you. Carrying loans this late limits how much you can save for retirement, when compounding power is at its peak. Clearing lingering balances frees up more money for retirement accounts and wealth-building investments.

Avoid taking on new student debt or co-signing your children's loans unless all other options — savings, grants, scholarships, federal loans, or work-study — are exhausted.

Credit card interest rates have reached multi-decade highs. Carrying a balance from month to month is a wealth killer. Aim to be consumer debt-free by age 50 — no lingering credit card balances, no expensive personal loans.

This boosts your credit score and diverts thousands more dollars to retirement savings, travel, and more fruitful endeavors.

Maybe you've procrastinated on it for years, but by 50, it's really time to stop. An emergency fund is all the more critical at an age when family money requests come from two directions (aging parents and your kids) and you often have less skill resilience in the event of job loss.

A robust buffer will prevent you from tapping into your retirement account earlier than planned or racking up credit card debt.

T. Rowe Price recommends having between 3.5 and 5.5 times your annual salary saved by age 50 to be on track for retirement. For someone earning $70,000, that's $245,000 to $385,000.

These multiples may sound intimidating, but they provide a clear benchmark to check your progress. Whether on track or behind, it's also a wise time to talk with a financial planner if you haven't already done so.

Your peak earning years often align with your 40s and 50s, making this a prime time to maximize contributions to your 401(k) plan and other retirement accounts.

At age 50, you can also take advantage of catch-up contributions.

Insurance and estate planning, while always important, are now more critical than ever. Review your will, update beneficiaries, and make sure that your life and disability insurance coverage match your family's needs.

A proper estate plan avoids probate headaches, while insurance can keep loved ones protected from income loss or unexpected expenses.

Health care isn't getting any cheaper. By 50, it's wise to think ahead about long-term care. Medicare does not cover assisted living or extended nursing care, which can drain savings quickly.

Long-term care insurance or earmarking specific assets can help safeguard your retirement funds. Planning early usually means lower premiums and better coverage options.

Carrying a mortgage into retirement can put a strain on your fixed income. While not everyone can have their home fully paid off by 50, making extra payments or refinancing for a lower interest rate can help.

The closer you are to tackling your mortgage now, the more flexibility you'll have in retirement.

Knowing how you compare to others in your age group can keep you motivated. The median net worth of Americans ages 45 to 54 is about $247,200, and it rises to roughly $364,500 by ages 55 to 64.

If you're behind, focus on cutting debt and increasing savings. If you're ahead, stay disciplined, but don't forget to enjoy life before an emergency hits.

Families don't always learn financial planning by watching from the sidelines. Have conversations with parents about elder care and with kids about college or independence to align expectations.

Make sure to clearly define your boundaries now — laying out the help you will or will not provide. Transparency now is easier than financial chaos and emotional turmoil later.

Your 50s mark the transition from building wealth to protecting it. By this milestone, aim to be debt-free, mortgage-light, and well on your way to retirement readiness. Households in their 50s often see the steepest jump in net worth, with the median topping $288,000.

Being intentional now helps you prepare for retirement and to withstand economic downturns. Avoid surprising financial mistakes, and you'll set yourself up for freedom in the decades ahead.