Are You Making This Common Retirement Mistake in Your 50s?
For many Americans, your 50s are your peak earning years—a time to enjoy the rewards of your hard work and prepare for the next phase of life: retirement. But there’s a critical mistake that thousands make during this decade that puts their financial future in jeopardy.
They wait too long to catch up.
What’s the Mistake?
Most people in their 50s underestimate how much they’ll need and overestimate how long they have to prepare. They either assume Social Security will cover their expenses or believe they can “figure it out later.” By the time reality sets in, time—and compounding interest—is no longer on their side.
Why It’s So Dangerous
Here’s the truth:
-
By age 55, you should ideally have 7x your salary saved for retirement (per Fidelity benchmarks).
-
Yet, most Americans 50+ have less than $250,000 saved.
And it’s not just about how much you’ve saved—it’s how it’s invested, how you’re reducing taxes, and whether you’re generating income that matters most.
How to Fix It Before It’s Too Late
Here’s how to course-correct, right now:
1. Max Out Catch-Up Contributions
If you’re 50 or older, the IRS lets you contribute more to retirement accounts:
-
401(k): Up to $30,500 per year (as of 2025)
-
IRA/Roth IRA: Up to $8,000
Don’t leave this opportunity on the table.
2. Review Your Asset Allocation
Too many 50-somethings are either too aggressive or too conservative. Work with a fiduciary advisor to find the right balance between growth and capital preservation.
3. Create an Income Plan
Retirement isn’t about a lump sum—it’s about generating predictable, sustainable income. Explore:
-
High-yield CD ladders
-
Dividend-paying investments
-
Roth conversions to reduce future taxes
-
Real estate income (without being a landlord)
4. Consider Health Care Costs
Don’t forget about the average $315,000 in out-of-pocket health expenses in retirement. Build this into your plan early.
5. Work with a Retirement Planning Specialist
If you’re 50+, you can’t afford trial and error. A seasoned advisor can help you build a tax-efficient withdrawal strategy, minimize market risk, and help ensure your money lasts.
Final Thoughts
It’s never too early—or too late—to take retirement planning seriously. But your 50s are a pivotal window. Avoid the biggest mistake of all: doing nothing or waiting too long.
At Manna Wealth Management, we specialize in helping people in their 50s and 60s make the most of their final working years and transition confidently into retirement.
📞 Ready to fix your retirement plan?
Schedule a complimentary strategy call with one of our advisors today.
