Your 50s are a turning point. There may be a light at the end of the tunnel for big expenses like tuition and mortgages and your earning power may be peaking. Now’s the time to focus—because retirement could last as long as your career did.
Whether you’re dreaming of retirement at 55 or just want to know if you’re on track, Fidelity’s planning tools can help. You can find out how likely your plan is to succeed—and what to consider to help improve your odds.
“You may have a lot more wealth than you've ever had, and the stakes are a little higher,” says Kenny Davin, vice president and Fidelity branch manager in Fort Lauderdale, Florida. “Time to get serious.”
1. Get granular with your budget
This is the decade to get detailed. Knowing where your money goes helps you spot areas to cut back—and prepare for surprises.
“In your 50s is when you should be getting a lot more detailed about current and future spending,” Davin says.
Read Fidelity Viewpoints: Ready to retire? You still need a budget
2. Plan for health care costs
Health care is one of the biggest variables in retirement—and in your 50s, it’s time to get proactive.
Fidelity estimates that a 65-year-old retiring in 2025 will need about $172,500 for medical expenses throughout retirement, even after Medicare. That’s up more than 4% from 2024—and it’s likely to keep rising.
A health savings account (HSA) may be able to help. If you’re enrolled in a high-deductible health plan (HDHP), you may be able to contribute to an HSA. HSAs offer a triple-tax advantage:1
- Contributions are tax-deductible or pre-tax.
- Any growth is tax-deferred.
- Withdrawals are tax-free for qualified medical expenses.
3. Maintain and optimize your emergency savings
By your 50s, your emergency fund could be more than a safety net. It could be a strategic buffer that helps protect your retirement plan.
Unexpected expenses like medical bills, home repairs, or job transitions can still happen. But now, the stakes are higher.
“An emergency fund isn’t just about peace of mind,” says Davin. “It’s about protecting the momentum you’ve built.”
Aim for 3 to 6 months of essential expenses, depending on your household situation. If you’re single, the sole earner in your household, self-employed, or supporting dependents, lean toward the higher end. And if you’re planning a career shift or early retirement, consider building a larger cushion.
4. Protect the wealth you have
You’ve spent decades building your financial foundation—now’s the time to safeguard it.
Start by reviewing your insurance coverage. Life changes in your 50s—like kids leaving home, career shifts, or health developments—can affect what you need. Scrutinize:
- Disability insurance: Still essential if you're working. It protects your income if illness or injury keeps you from earning.
- Life insurance: Reassess your coverage. You may need less than before—or more, depending on your dependents and estate goals. Term life insurance may still be appropriate for your circumstances and, at this stage and later in life, some people opt for permanent life insurance policies which may help with estate planning, legacy goals, or providing liquidity for heirs. Read Fidelity Viewpoints: What you should know about life insurance
- Umbrella insurance: These policies add a layer of protection that can shield your assets from lawsuits or major claims.
- Long-term care insurance: Premiums rise sharply with age, and health issues can limit availability.
- Estate plan: Update your will, beneficiaries, powers of attorney, and health care directive.
“You probably have more wealth than ever—and more to lose. This is the decade to get serious about protecting it,” suggests Davin.
5. Supercharge your savings
Your 50s are a critical window to boost retirement savings and fine-tune your investment strategy. With retirement on the horizon, every dollar—and every decision—counts.
Explore catch-up contributions
If you're 50 or older, you can contribute more to tax-advantaged accounts—and those extra dollars can make a big difference.
In 2025:
- IRAs: Add up to $1,000 in catch-up contributions, for a total of $8,000.
- 401(k)s and similar workplace plans: Add up to $7,500, for a total of $31,000.
- HSAs: Starting at age 55, contribute an extra $1,000.
Even modest catch-up contributions can add up. For example, contributing an extra $1,000 annually to an IRA for 20 years with a 7% return could grow to nearly $44,000.2
In general, we suggest aiming to save at least 15% of your pre-tax income, including any employer match. If you’re not there yet, consider increasing your contribution by 1% each year until you are.
Fidelity’s guideline suggests having 8x your income saved by age 60 and 10x saved by age 67, if that’s the age you plan to retire.3
6. Invest for growth potential and manage risk
At this stage, investing is about striking the right balance: You still need growth to support a long retirement, but you may also need stability to protect what you’ve built.
“You’re still focused on helping your money to grow but you’re entering a phase where managing risk can be just as important,” Davin says.
Here’s what to consider for your portfolio in this decade:
- Stocks for growth potential: Equities remain essential. They offer the potential to outpace inflation and support long-term goals. Consider maintaining a meaningful allocation to stocks—especially if retirement is still 10+ years away.
- Bonds for stability: Fixed income investments can help provide steady income.
- Cash for flexibility: A cash cushion can help you cover short-term needs without selling investments during market downturns.
Tip: Review your asset allocation annually. If you’re unsure, consider getting professional help through a target date fund or a managed account.
7. Pay down debts
In your 50s, it’s time to get aggressive about eliminating debt—especially high-interest and nonessential balances.
Start with credit cards, auto loans, and private student loans. These often carry interest rates that far exceed what you’re earning on savings or investments. Every dollar spent on interest is one less dollar working toward your future.
If you’re still carrying mortgage debt, consider whether refinancing or accelerating payments makes sense. But don’t rush to pay off low-interest debt if it would drain your emergency fund or retirement contributions.
Read Fidelity Viewpoints: Should you pay down debt or invest?
Tip: Avoid taking on new debt if you can. Big purchases—like a car or home renovation—should be weighed against your retirement timeline and cash flow.
8. Review your Social Security and pension benefit options.
Social Security may be years away—but in your 50s, it’s time to start shaping your strategy.
To get a sense for how much you may be due, get an estimate of your future benefits and a record of your lifetime earnings history at ssa.gov. Fidelity’s Social Security Benefits Calculator can help you model different claiming scenarios.
Timing matters:
- You can claim benefits as early as age 62, but doing so may reduce your monthly payout by up to 30%.
- If you wait until age 70, your benefit increases by about 8% per year beyond your full retirement age (generally 67).
Consider your health, family longevity, and other income sources when deciding when to claim. If you’re married, coordinating with your spouse can help maximize household benefits.
Tip: Add your projected Social Security and any pension income to your retirement plan. Knowing what’s coming helps you determine how much more you need to save—and when you can afford to retire.
Your 50s may also be a good time to start thinking about your retirement income. You don’t have to wait until you retire to plan for the income you’ll need, Davin says. “Think about whether it makes sense to use some of your assets today for a deferred income annuity and lock in that paycheck you can count on tomorrow. That way your future cash flow—and the lifestyle it represents—isn’t completely at the whim of the market.”
Read Fidelity Viewpoints: Create future retirement income
9. Plan your next act
Your 50s are a prime time to rethink not just when you’ll retire, but how you want to live.
Whether it’s a part-time gig, seasonal work, consulting, or a full-blown encore career, a second act can offer more than just income—it can provide purpose, structure, and flexibility.
Even if you’ve saved enough, earning income in your 60s can help you:
- Delay tapping retirement accounts.
- Continue contributing to tax-advantaged plans.
- Postpone Social Security for bigger checks.
Tip: Start exploring at 55 what you might want to be doing at 60. Build skills, test ideas through moonlighting, and get financially fit for the transition.
10. Make a strategic housing move
Housing is one of your biggest expenses—and one of your biggest levers.
- Downsizing, relocating, or refinancing could free up cash and simplify your lifestyle.
- A smaller home or move to a lower-cost region can reduce maintenance and improve your retirement outlook.
Tip: Start your research early. Visit potential locations, run the numbers, and consider both financial and emotional factors. The sooner you begin, the more confident your decision will be.
Consider getting help
It can make sense to talk to a financial professional about your retirement plan. They could help you:
- Run the numbers on retirement timing and spending.
- Model different scenarios and trade-offs.
- Build a strategy that aligns with your goals, lifestyle, and risk tolerance.
Whether you’re wondering if you can retire early, relocate, or launch a second act, a professional can help you see the full picture and make confident choices.
Tip: Start with a conversation. Connect with Fidelity to explore your options and take the next step.