Managing your money when you’re 50 and over is about enjoying what you’ve worked for while planning for the future. In your 50s you will experience significant changes in your lifestyle, goals, and values. While your career is important, as your life shifts, you might be thinking about what’s next. You might experience some realisation and start to shift the focus back to yourself and lifestyle.
If you are planning your retirement or already retired, it’s also important to make sure you can enjoy your lifestyle today. Here are some areas you can consider to get the right balance along the way.
Help out adult children
You may want to consider how you can support your adult children to get a head start. Whether that’s paying for university, assistance when they move out of home, contribution to a wedding, or helping with house deposit.
Review your super investments
As your retirement approaches, it is critical to stay on top of your superannuation investments. You should have already arranged your super to weather financial emergencies. But if that’s not the case, it’s never too late. Getting your super sorted should be on the top of your priority list in managing money in your 50s.
Change in your lifestyle
If you have children, they are likely to start living independently. This will give you a chance to think about what you want out of your life. This could be about moving, downsizing your house, or simply doing more of what you enjoy.
Pay off your debts
Having less debt or none at all should be your next goal as your work life is nearing an end. If you’re lucky enough to receive an inheritance, it’s a must to think about how you use this to good effect, such as paying off your debts.
Support causes by donating money
You may want to practice philanthropy and contribute financially to causes close to your heart. You may do this by leaving a bequest in your will as part of your legacy. Also, as your adult children start to leave home, you may find yourself with more free time for volunteering.
A concrete retirement plan
You have to understand how much you will need for retirement, what income streams you can rely on, and what you want out of retirement.
- Exit plan. Now is the best time to consider how and when you want to stop working. If you have your own business, this can be about your exit strategy. If you are an employee, this is more about strategy as you transition to retirement.
- Review your strategy. It’s important to think about your income streams in the future and the role your superannuation will play. You’re more likely to adopt a more defensive strategy as you’re no longer working to make up for any losses.
- Review your estate plan. While your lifestyle changes, it’s also important to review your estate plan and ensure your will is up to date. As your children become adults, your family may grow with marriages and grandchildren, so it’s a must to make sure your estate plan is up to date.
Get expert advice about your money
From retirement planning to estate plan, properties and investments, money advice from a financial expert who understands you and your family can help you achieve these goals.
Make the ASAG Reverse Mortgage part of your money management
ASAG supports our Australian customers who are about to transition to retirement or already in retirement by offering our equity release solutions to help boost their lifestyle. One in particular is our reverse mortgage.
The ASAG Reverse Mortgage gives parents and grandparents the ability to act as the Bank of Mum and Dad to their family when they need it most. We find customers wanting to assist their family financially, whether to pay for educational expenses, a home deposit, or a mortgage. Our reverse mortgage allows them to do this without accessing their long-term retirement funding or superannuation.
We’re happy to assist you with more details about how the ASAG Reverse Mortgage works. Our lines are open on 1300 002 724 and at email@example.com, so feel free to call us or send your enquiries about our equity release solutions.
You can also get started by using our tool below to assess your available equity.