10 Things To Do Immediately if You Just Started Thinking About Retirement at 50

If you're 50 and just now starting to think about retirement, don’t panic — there’s still plenty you can do to get on the right track.

While starting later means you’ll need to be strategic, the good news is that you can build a solid retirement foundation with some smart financial planning and actionable steps.

Here are 10 things you should do right away to boost your savings and prepare for the future.

One of the biggest advantages of hitting 50 is that you’re now eligible for catch-up contributions in retirement accounts.

For 2024, the IRS allows you to contribute an additional $7,500 to your 401(k) on top of the standard $23,000 annual contribution limit. If you have an IRA, you can contribute an extra $1,000 on top of the $7,000 yearly limit.

What to do now: Max out your retirement accounts, including these catch-up contributions. This will allow you to significantly boost your savings in the last 15-20 years before retirement.

As you age, the likelihood of needing long-term care increases, and it can be one of the most expensive aspects of retirement.

Many people don’t plan for the potential costs of assisted living, home health care, or nursing homes. Investigating your options now, whether purchasing long-term care insurance or exploring state programs, will help protect your retirement savings from future medical costs.

What to do now: Research long-term care insurance and speak to a financial advisor about how to incorporate it into your retirement plan. This can help you avoid depleting your savings if you need care later in life.

Carrying debt into retirement can drain your resources quickly. Whether it's credit card debt, car loans, or a mortgage, reducing or eliminating debt before you retire is critical.

Paying off debt now will allow you to put more money toward retirement savings and reduce your monthly expenses in retirement.

What to do now: Create a debt repayment plan. Focus on paying off high-interest debt first, like credit cards, and consider accelerating your mortgage payments if possible.

Estate planning isn’t just for the ultra-wealthy. It’s essential for anyone who wants to ensure their assets are distributed according to their wishes.

For example, a will, durable power of attorney, and healthcare directives are crucial components of an estate plan that will protect your family and your legacy.

What to do now: Consult with an attorney to create or update your estate plan. This will help your family avoid probate, ensure your assets go where you want them to, and provide peace of mind.

If you have a high-deductible health plan (HDHP), you’re eligible to open a health savings account (HSA), which offers triple tax advantages. Contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are tax-free.

What to do now: Open an HSA and start contributing. You can use these funds for current medical expenses or save them for future healthcare costs in retirement.

While it's important to grow your investments, as you approach retirement, reducing risk becomes more critical.

If your portfolio is heavily weighted in stocks, it might be time to rebalance to include more conservative investments like bonds. A sudden market downturn could significantly reduce your savings just when you need them the most.

What to do now: Review your investment portfolio and consider reallocating to safer, less risky assets. A financial advisor can help you find the right balance of growth and security based on your retirement timeline.

One of the smartest moves you can make is delaying Social Security benefits for as long as possible.

While you can begin collecting benefits at age 62, waiting until full retirement age (67 for most) or even up to age 70 can increase your monthly benefit amount significantly. This can provide you with a larger and more reliable income stream during retirement.

What to do now: Plan to delay Social Security benefits if you can afford to. Use this time to build up your retirement savings, and when you finally claim your benefits, you’ll receive a much higher monthly payout.

At age 50, it’s essential to boost your savings rate as much as possible. Ideally, you should be saving 15% to 20% of your income for retirement.

If you're behind on retirement savings, now is the time to catch up by cutting unnecessary expenses and redirecting those funds toward your retirement accounts.

What to do now: Assess your current savings rate and look for areas where you can increase contributions. The earlier you start saving aggressively, the more time your investments have to grow and compound.

Now is the time to take a hard look at your lifestyle and consider making adjustments that can free up more money for retirement.

Whether it's downsizing your home, cutting back on luxury expenses, or reducing travel, small sacrifices now can lead to greater financial freedom later.

What to do now: Identify areas where you can cut costs and use the savings to fund your retirement accounts or pay down debt.

Retiring later not only allows you to save more but also reduces the number of years your savings will need to support you.

Even working a few extra years can have a major impact on your retirement security, especially if you continue to contribute to your retirement accounts during that time.

What to do now: If your health and circumstances allow, plan to work past the traditional retirement age. This will give you extra time to save, reduce your need to tap into Social Security early, and provide a larger nest egg.

Starting to plan for retirement at 50 may seem daunting, but it’s never too late to make smart financial decisions.

By taking advantage of catch-up contributions, reducing debt, and adjusting your investment strategy, you can set yourself up for a stress-free retirement.

Have you taken the necessary steps to secure your future? The sooner you start planning, the better prepared you’ll be to enjoy your retirement without worrying about running out of money.