If you are in your 50s, retirement may seem a long way off. You’re secure in your career, you may be in or approaching the empty-nest phase, and you’ve probably made significant progress toward paying off big debt like a mortgage. It might feel like you can finally breathe a little bit.
But retirement is coming faster than you think, and your 50s are the best time to prepare. According to Fidelity, there are 10 things you can do in your 50s to make sure you’re ready when the time comes to leave the working world behind.
Make Sure Your Budget Is Up To Date
Take a good look at your budget to see where you can make changes. Look for expenses that you may be paying out of habit rather than necessity — like streaming services you don’t use, or your adult children’s cell phone bills. Earmark those items that you won’t have in your retirement budget, like commuting expenses and workday lunches.
If you don’t have a budget, this is the time to make one.
Find Out: This ‘Boring’ Investment Could Be the Secret To Never Running Out of Retirement Income
Read Next: 5 Clever Ways Retirees Are Earning Up To $1K per Month From Home
Save Now for Future Healthcare Costs
The cost of healthcare comes as a shock to many retirees. Fidelity estimates that a 65-year-old retiring in 2025 will spend about $172,500 for medical expenses in retirement, above and beyond what Medicare covers.
One good way to save for these costs in with a health savings account, or HSA. If you have a high-deductible health plan (HDHP), you can contribute to an HSA with pre-tax dollars. You can invest your contributions, and withdrawals are not taxed if they’re used for qualified medical expenses.
The maximum you can contribute to an HAS for 2026 is $4,400 if only you are covered by the HDHP, or $8,750 if you have family coverage. If you’re over 55, you can add a catch-up contribution of $1,000.
Make Sure Your Emergency Savings Are Adequate
An emergency that requires you to dip into your retirement savings is always serious, but when you’re in your 50s, you have less time to make up for an unplanned withdrawal. So, make sure you have at least three to six months of essential expenses in a liquid emergency fund, like a high-yield savings account. That way, if something unexpected happens, you’ll be more likely to have the funds to cover it.
Protect What You’ve Built So Far
There are two parts to a secure retirement: saving up the money you’ll need, and then spending it on the right things. There will always be expenses you don’t expect, but for some of them, you can protect against them with insurance. In your 50s, take a look at your insurance coverage to make sure it is still what you need.
If you’re still working, you need disability insurance. If you still have kids at home or in college, you’ll need life insurance, at least until they’re on their own. An umbrella policy can protect you if there’s an accident or lawsuit and you’re liable. Long-term care insurance can pay for nursing home care so you don’t have to spend your savings.
Make sure you have an estate plan, including a will, power of attorney, healthcare proxy and trusts if necessary.
Boost Your Savings
Your 50s may be your highest-earning years, and they can also be some of the least costly, especially if your kids are grown and flown. Now is the time to double down on your savings.
Make sure you’re maxing out your IRA, 401(k) and/or HSA accounts, including catch-up contributions. After that, save additional funds in a non-retirement account. When you’re retired, you can use this money first before you tap your retirement funds.
Fidelity recommends saving at least 15% of your pre-tax income, with the goal of having eight times your income saved by age 60 and 10 times by age 67.
Balance Your Portfolio
When it comes to your investments, you’ll want to have the potential for growth while managing risk. Make sure you have a balance of stocks (or mutual funds) for growth, bonds for stability and cash for liquidity.
Banish the Debt
It’s important to eliminate as much debt as possible in your 50s so you’re not carrying it into retirement. Start with the highest interest debt you have, like credit cards. Then move on to student loans, auto loans and personal loans. Once you’re down to just your mortgage, consider if it makes sense to pay that off or keep it — a lot will depend on your interest rate.
Plan Your Retirement Income
Take a look at your potential Social Security benefit and start thinking about how to maximize it. You can start receiving benefits at age 62, but the amount will be reduced, and you won’t make that up. Conversely, you can wait until 70 for the maximum monthly benefit. If you have a pension, familiarize yourself with your options for taking that, particularly the spousal options.
Imagine Your Retirement Lifestyle
It’s not too soon to think about how you want to spend your days post-work. Many people don’t feel old enough at 65 or 67 to stop work entirely, so consider if you want to have a new career, start a business of your own or have a side gig or seasonal job.
Reimagine Home Sweet Home
Your home can be a source of income in your retirement if you’re amenable to downsizing and/or moving somewhere less expensive. Consider what your priorities are and start researching the possibilities.
By using your 50s to make a plan for your 60s, 70s and beyond, you could be in a much better position to live the retirement life you’ve always dreamed of.
More From GOBankingRates
- 10 Kirkland Products Costco Quietly Raised Prices on -- and Where To Buy Instead
- 5 Hybrid Cars for Middle-Class Retirees Getting Massive Price Drops for 2026
- 9 Low-Effort Ways To Make Passive Income (You Can Start This Week)
- 6 Safe Accounts Proven to Grow Your Money Up to 13x Faster
This article originally appeared on GOBankingRates.com: Retirement Checklist: 10 Things To Do Now in Your 50s, According To Fidelity
