9 Common Mistakes People Make in Their 50s

It s never too late to start saving for retirement. Develop a plan with realistic goals and a budget to understand your spending and start saving, even if it s a small amount.

Starting Late on Planning and Saving

Utilize catch-up contributions and employer matching if you re over 50. Maximize your retirement contributions to benefit from potential employer matches and increased savings limits.

Missing Out on Retirement Plan Provisions

Avoid withdrawing from retirement accounts before 59½ to prevent a 10% penalty and additional income taxes. Seek alternative financing methods to preserve your retirement funds.

Early Withdrawals from Retirement Accounts

Funding children s education at the expense of your retirement can jeopardize your future. Remember, it's easier to get loans for education than for retirement needs.

Prioritizing Children's Education Over Retirement

Being part of the sandwich generation can strain your retirement savings. Discuss financial plans with your parents to prepare for potential support needs and avoid early withdrawals.

Neglecting Costs of Supporting Family

Maintain some equity investments to keep up with inflation and future expenses. Balance risk and reward in your portfolio with the help of a financial planner to secure your long-term goals.

Investing Too Conservatively

Focus on paying off high-interest debt like credit cards and student loans before lower-interest mortgage debt. Maintaining a mortgage can provide financial flexibility and liquidity.

Mismanaging Debt Priorities

Review and update your estate plan every three years to reflect current wishes and changes in circumstances. Ensure your Will, Power of Attorney, and Advance Medical Directive are up-to-date.

Not Updating Estate Plans

Reassess life insurance policies every five years or after life changes. Ensure coverage meets current needs, update beneficiary designations, and adjust coverage levels as necessary.

Neglecting Life Insurance Reviews