6 Must-Know Retirement Savings Steps After 50

If you’re 50 or older and haven’t started planning for retirement, it’s time to act.

The decisions you make in the next few years can determine whether you retire comfortably at 60 or find yourself working well into your 70s.

The good news? It’s not too late to take control, but the clock is ticking. In this comprehensive guide, we’ll walk you through six critical steps to secure your retirement, debunk common myths, and help you avoid costly mistakes. Whether you’re in Boston or anywhere across the U.S., these strategies will empower you to build a realistic and sustainable retirement plan.

And if you are in the process of evaluating if financial advice is right for you, check out the opportunity for a free strategy call with Parkmount Financial Here

Step 1: Debunk the $1 Million Retirement Myth:

You’ve likely heard that you need $1 million to retire comfortably. This figure, popularized in the 1980s and 1990s, no longer holds up in today’s economy due to inflation and rising costs.

For example, adjusting for inflation, $1 million from the 1990s is equivalent to roughly $2.5 million today. But even this number can be misleading.

The “million-dollar myth” creates two problems:

• Paralysis for those behind: If you haven’t saved $1 million, you might feel it’s impossible to retire, causing you to delay planning.

• False confidence for others: Hitting $1 million doesn’t guarantee security if it doesn’t align with your lifestyle needs.

  
  

What to Do Instead:

Focus on your number, not a generic benchmark. Start by calculating your monthly retirement expenses—housing, healthcare, food, travel, and hobbies. Use a conservative withdrawal rate, such as 3.5%, to estimate your required nest egg.

For example, if you need $5,000 per month ($60,000 per year), a 3.5% withdrawal rate suggests a nest egg of approximately $1.7 million. For some, this may be lower or higher depending on lifestyle and location. Work with a fiduciary financial advisor to create a personalized projection.

This clarity shifts your focus from arbitrary goals to a plan tailored to your life. Related Tip: Tools like retirement calculators or budgeting apps can help you estimate expenses, but a professional can refine these numbers for accuracy.

Step 2: Stop Waiting for Certainty

One of the biggest obstacles to retirement planning is the temptation to wait for the “perfect” moment to start a financial planning process—when the market stabilizes, your income increases, or your mortgage is paid off. However, waiting can cost you your most valuable asset: time.

Research from the National Retirement Risk Index by Boston College shows that 47.1% of American households are at risk of not maintaining their standard of living in retirement. This statistic has remained stubbornly high, even in strong market conditions, because many delay planning until it’s too late to recover lost ground.

Why Time Matters After 50:  

• Compound growth shrinks: The longer you wait, the less time your savings have to grow through investments.

• Fewer options: Delaying limits your ability to adjust strategies, such as increasing savings or diversifying income streams.

• Unexpected disruptions: Health issues or job loss can derail plans if you haven’t started early.

  
  

What to Do Instead:

Build a flexible retirement plan now, even if it’s a rough draft. Map out your current income, savings, and target retirement age, then run projections. Review and revise this plan at least twice a year to account for changes in income, expenses, or goals.

A dynamic plan that evolves with your circumstances is far more effective than waiting for certainty. Pro Tip: Use tools like Google Keyword Planner or Moz Keyword Explorer to research retirement planning terms like “retirement savings strategies” to stay informed about trends and resources.

Step 3: Account for Lifestyle Creep

Many assume retirement will cost less because expenses like commuting or work lunches disappear. However, lifestyle creep—when spending rises with income or newfound freedom—can derail even the best-laid plans. According to Investopedia, 45% of retirees face “stealth costs” like travel, home upgrades, or supporting family, which can inflate budgets unexpectedly.

How Lifestyle Creep Impacts Retirement:  

• Emotional spending: Retirees often spend more on hobbies, travel, or family due to increased free time.

• Inflation effects: Costs for essentials like food and utilities rise over time, eroding purchasing power.

• Underestimating desires: Many fail to account for new activities, like golf or international travel, that add up quickly.

  
  

What to Do Instead:

Track your current spending for 90 days to establish a baseline. Then, project how your lifestyle might change in retirement. Ask yourself:

• Will I travel more?

• Will I pursue expensive hobbies?

• Will I support family members, like grandchildren or aging parents?

Translate these answers into a monthly budget, then stress-test it against inflation and unexpected costs. This exercise ensures your plan reflects your real retirement lifestyle, not an idealized version. Related Phrase to Explore: “Retirement lifestyle planning” can help you find resources to align your savings with your goals.

Step 4: Plan for Healthcare Costs

Healthcare is one of the most overlooked expenses in retirement planning. Research shows that the average retiree spends $150,000 on healthcare, while couples may face costs upwards of $300,000, excluding long-term care. Medicare doesn’t cover everything—premiums, out-of-pocket costs, dental, vision, hearing aids, and long-term care can create significant gaps.

Common Healthcare Planning Mistakes:  

• Assuming Medicare covers all costs.

• Ignoring long-term care risks, which can deplete savings in extreme cases.

• Underestimating costs due to good health in your 50s.

What to Do Instead:  

1. Treat healthcare as a separate budget item: Estimate costs for premiums, deductibles, and uncovered services.

2. Research pre-Medicare options: If you plan to retire before 65, explore ACA marketplace plans to bridge the gap.

3. Maximize Health Savings Accounts (HSAs): If eligible, contribute to an HSA for triple-tax-advantaged savings that roll over annually.

4. Plan for long-term care: Consider self-insuring or exploring insurance options in your 50s, when premiums are more affordable.

   
   

Healthcare costs in retirement can vary by state and personal health and personal health plan choices. For example, higher cost healthcare states like North Carolina and Florida generally cost retirees an average of $7,000-$8,000 per month, whereas lower healthcare cost states for retirees like Massachusetts and Hawaii average closer to $3,000-$4,000, despite being the two higher cost states overall. So personalized planning can be valuable.

The best way to get this is to contact a financial planner. We offer a free strategy call with Parkmount Financial Here

Step 5: Don’t Rely on Working Longer

Many people in their 50s assume they can “just work longer” to make up for inadequate savings. However, this strategy is risky. The Employee Benefit Research Institute reports that nearly half of retirees leave the workforce earlier than planned due to health issues, layoffs, or caregiving responsibilities.

Risks of Relying on Extended Work:  

• Health challenges: Chronic conditions or disabilities can force early retirement.

• Job market risks: Ageism or economic downturns can limit employment opportunities.

• Life unpredictability: Family obligations, like caring for a spouse or parent, can disrupt plans.

  
  

What to Do Instead:

Build a plan assuming you’ll retire at your target age, treating extra working years as a bonus. Strategies include:

• Maximize catch-up contributions: After 50, you can contribute extra to 401(k)s ($7,500 in 2025) and IRAs ($1,000).

• Optimize expenses: Reduce discretionary spending to boost savings.

• Diversify income: Explore passive income streams, like rental properties or dividends, to reduce reliance on work.

Step 6: Work with a Fiduciary Financial Advisor

Navigating retirement planning alone can be overwhelming, especially with complex factors like taxes, investments, and healthcare. A fiduciary financial advisor, obligated to act in your best interest, can provide clarity and tailored strategies.

Benefits of a Fiduciary Advisor:  

• Objective guidance: Fiduciaries prioritize your goals, not commissions.

• Comprehensive planning: They integrate savings, investments, and lifestyle goals into a cohesive plan.

• Ongoing adjustments: Regular reviews ensure your plan adapts to life changes.

Whether you’re in Boston or seeking virtual fiduciary services across the U.S., a trusted advisor can help you avoid common pitfalls and build a secure retirement. You can learn about our process in this free strategy video

Why These Steps Matter Now

The years after 50 are a critical window for retirement planning. Delaying action risks losing the compounding power of time, limiting your options, and increasing stress. By addressing the million-dollar myth, planning for lifestyle and healthcare costs, and building a flexible strategy, you can take control of your financial future.

Key Takeaways:  

• Calculate your personal retirement number based on real expenses.

• Start planning now, even if it’s imperfect, to maximize time and options.

• Account for lifestyle creep and stealth costs like healthcare.

• Avoid relying solely on working longer—build a plan that works without it.

• Partner with a fiduciary advisor for tailored, objective guidance.

  
  

Get Started with Confidence

If you’re ready to take the next step, I’ve created a free strategy video that walks you through practical ways to boost your retirement nest egg. It’s concise and actionable, with an option to apply for a complimentary strategy call to review your timeline, identify gaps, and map out next steps. No sales pitch—just clear, personalized feedback. Click the link in our bio to access the video and start building your retirement with purpose.

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