5 Financial Steps to Take Once You Turn 50

NEW YORK, February 14, 2023 (Newswire.com) - iQuanti: As you enter your 50s, it's important to have a long-term plan for financial stability. It won't be long before you start living off of the retirement you've saved up. Some financial steps that can help you prepare for the future include paying off your debt and getting life insurance. Here are five financial steps you can take once you turn 50. 

1. Boost your retirement account contributions 

Make it a goal to put away as much money as you can towards your retirement. If you work for an employer that offers a traditional 401(k) plan, you might be able to contribute pretax money. Additionally, if your employer offers to match your 401(k) plan contributions, be sure to take advantage of it. Let's say your employer offers to match 50% of your contributions up to 5% of your salary. That means if you earn $60,000 a year and contribute $3,000 to your retirement, your employer will add another $1,500. One other thing to remember is that after 50, you're able to make annual catch-up contributions to your retirement. 

2. Get a life insurance policy 

As we get older, we become more at risk of developing serious health issues. Given the increased risk, it's important to financially protect your family whenever you pass away. A life insurance policy can provide enough finances to cover the loss of your income, living expenses, and any remaining debt you have. It can also cover funeral costs, allowing your family to keep most of their attention on mourning their loss. Through life insurance protection, you can give yourself and your family peace of mind knowing that if anything happens to you, they'll be financially taken care of. 

3. Pay off your debt 

Paying off your debt will allow you to save more for retirement. There are several strategies that can allow you to become debt-free. One strategy you might consider is the debt snowball strategy. With this method, you'll focus on paying off your smallest debt first, and then gradually work your way up to the largest one.  

Another idea to look into is consolidating your debts. This can help make your payments more manageable or potentially make the payoff period shorter. Getting rid of your debt will allow you to spend your retirement savings however you want. 

4. Take care of your health 

Having health problems may lead to costly medical bills. Taking care of yourself can help you avoid needing as much medical care. Practice good health habits such as eating healthy, exercising regularly, and getting adequate sleep.  

5. Ask your parents about their financial plans 

If you still have living parents, it's important to discuss with them how they'll continue to be financially stable. They may have enough in retirement to live independently for a long time. But it's also possible that unexpected health issues could cause them to need your financial support.  

Come to a decision about whether your parents will live with you when they can no longer take care of themselves. If it's not possible for them to live with you, discuss the possibility of finding them a long-term care home. Knowing these things ahead of time can help you avoid being unprepared financially. Consider taking all these financial steps when you turn 50 to help ensure you have a strong financial future.