Guide to Planning Retirement in Your 50s

Reaching midlife can bring a fresh perspective on retirement planning, and it’s never too late to refine your strategy–or get your plan started. Deciding how to invest for retirement at 50, for instance, often means a careful evaluation of your risk tolerance, goals, income and debt. Whether you’re catching up on savings or fine-tuning your financial plan, taking a proactive approach can help you build a stronger retirement portfolio.

Consider enlisting the help of a financial advisor who specializes in retirement planning. Connect with your advisor matches today.

How Much Should You Have Saved at 50?

There is no universal benchmark for how much you should have saved by age 50, but national data offers a reference point. According to the Federal Reserve’s 2022 Survey of Consumer Finances, Americans aged 45 to 54 had:

A mean or average retirement savings balance of $313,220
A median balance of $115,000

Approximately 62% of Americans in this age range have retirement savings, meaning that a sizable number of 50-somethings may be behind on their goals. .

These figures are in contrast to the typical retirement targets suggested by some financial planners, which often recommend saving five to six times your annual salary by age 50. For example, someone earning $80,000 a year would aim to have $400,000 to $480,000 saved by that age. However, actual savings levels tend to be lower in practice.

Keep in mind that averages can be skewed by very high account balances, as the numbers show here. Median savings amounts are typically much lower, since they represent the middle of the pack.

Instead of focusing solely on benchmarks, consider your current expenses, retirement goals, and time horizon. The more relevant question is how much you’ll need to support your lifestyle in retirement and how to adjust your plan to meet that need.

Figure Out Your Retirement Goals

Before you start investing, take time to think about your retirement goals and what you want to do 10, 20 or 30 years from now. For instance, you might ask yourself these questions to get a more complete sense of your retirement vision:

At what age would you like to stop working?
Will you continue to work in a part-time capacity once you’ve retired?
Do you want to live in the city you currently reside in, or are you interested in moving?
Will you stay in your current home or downsize?
Do you want to travel or do anything else that you weren’t able to do while you were working?
Is there anyone you’ll be financially responsible for in retirement?

Once you’ve answered some of those questions for yourself and your family, you’ll be in a better place to figure out how much you’ll need to save for retirement. You can use SmartAsset’s retirement calculator to see if you’re currently saving enough each month to be where you want to be when you retire. And if you’re not, you can start figuring out how to close any gaps.

What to Do If You Have Nothing Saved

A couple evaluating how much they will need to save for retirement.

Once you’ve figured out what your approximate money needs in retirement will be, it’s time to figure out how to get there. You’ll want to boost your savings and make your money work for you so you have enough when you reach the age at which you hope to retire. Even if you have no retirement savings at age 50, it isn’t too late to get started. Here are the steps and options you can take:

1. Open a Retirement Account

You should be using a retirement account of some sort to invest your money. Whether it’s a 401(k), a 403(b), a traditional or Roth IRA or some other plan, having an investment vehicle to put away money is key. If you’re kicking up your savings at age 50, chances are you’re decently close to retirement. Because of this, some experts recommend choosing lower-risk investment options like bonds. You won’t see the huge returns that riskier choices like stocks can bring, but it’s less likely you’ll see big losses, even if the market turns volatile.

2. Take Advantage of Catch-Up Contributions

Another thing to remember is that now that you’re over 50, you have a bit more leeway in terms of 401(k) contributions. In 2025, employees can normally contribute $23,500 per year to their retirement plan, up from $23,000 in 2024.

If you’re over 50, though, you can contribute up to $7,500 on top of that because you now have access to catch-up contributions. If you have the means to do it, try to max out your 401(k) contributions. Starting in 2025, people ages 60 to 63 can contribute up to $11,250 in catch-up contributions.

Make sure to find out if your company provides a match for 401(k) contributions. This is essentially free money for your retirement fund, so try to contribute at least as much as your employer will match. Also, pay attention to 401(k) vesting rules: Some companies require you to be employed for a certain amount of time before company matching funds are officially yours.

3. Consider Starting Your Own Business

Once you reach your 50s you likely have acquired a lot of knowledge in whatever industry or industries you’ve worked in. Starting your nest egg late might not be that bad if you’re able to start a successful business. This is often the best way to maximize your earnings, if successful. If you’re self-employed you can also fund a retirement plan and get access to matching funds from your business or an additional amount that you can contribute each year.

How to Invest for Retirement at Age 50 (and Beyond)

In your 50s, investing for retirement becomes a balance between pursuing growth and mitigating risk. You need to take enough risk to generate the returns you’re seeking, while leaving as little room for loss as possible.

With that being said, you may need to take a more nuanced approach to asset allocation. Your portfolio may still include plenty of stocks in your 50s, but the types of stocks you gravitate to might change. For example, instead of high-risk growth-stocks you may begin to lean more toward less glamorous, but more reliable dividend stocks.

Asset location, or where you hold your investments, also matters. Here’s a simple rule for deciding how to structure your portfolio.

Assets that are more tax-efficient are generally better suited to taxable brokerage accounts.
Less tax-efficient investments are typically better for tax-advantaged accounts, such as a 401(k) or IRA.

While you may be focused on stashing away as much money as possible from age 50 to your target retirement age, taxes are an important part of the picture. The more you can do to minimize taxes, the more your investment growth you’ll get to keep.

Remember that if you used a Roth 401(k) or Roth IRA, you already paid taxes on that money before it was invested, so you’ll be able to withdraw it tax-free in retirement. For this reason, people who expect to be in a higher tax bracket in retirement than they are currently should especially consider using a Roth IRA.

Bottom Line

A senior couple enjoying their retirement.

Even if you’re already 50, it isn’t too late to get serious about saving for retirement. With careful consideration and planning, you can get yourself ready to move on to the next stage of your life. Just make sure you have clear goals defined, and that you take advantage of all the opportunities you have to save. Hard work, discipline and a helping hand from a financial advisor can put you on the path to financial security.

Tips for Retirement Planning

A financial advisor can help you create a plan to reach different retirement goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Don’t forget about Social Security. Use this Social Security calculator to estimate what you can expect your Social Security checks to be in retirement. After all, this money will play a role in your overall retirement budget.
If you want to set up and plan your retirement goals, SmartAsset’s retirement calculator can help you figure out how much you will need to save to retire comfortably.