15 Financial Moves to Make in Your 50s if You Want to Retire in Your 60s

Many people don't start really focusing on retirement until that milestone is a handful of years away. But if you're in your 50s, it means retirement planning absolutely needs to be on your radar. And here are a few pivotal moves to make during that decade.

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Learning to follow a budget is important for retirees, so it's best to get into the habit ahead of time. Plus, you may have some catching up to do in your IRA or 401(k). Having a budget could make it easier to carve out more money to build up your nest egg.

ALSO READ: Budgeting Secrets for Those Who Dislike Budgeting

You might enjoy driving your sports car around town. But if you feel your retirement savings need a boost, it's time to dump that car and replace it with a less expensive one. Freeing up a few hundred dollars a month could go a long way toward padding your nest egg.

Although paying off your mortgage in time for retirement isn't something you have to do, it's something you might want to do. That way, you won't be burdened with those monthly payments once you move over to a fixed income. But if you want your home paid off for retirement, you may need to spend the next decade putting a little extra money into your mortgage.

ALSO READ: What to Do if You Can't Pay Off Your Mortgage Before Retirement

Once you retire, you may have to cut back on spending. So it's better to get into that habit now and figure out ways to enjoy a comfortable lifestyle on less. Plus, the less you spend now, the more you can save.

Want to travel a fair amount in retirement? Then you may want to cut back on vacation spending now. Swapping luxury resorts for modest hotels could help you pull off the retirement you want without having to compromise then.

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If your company offers a 401(k) plan, you might also be entitled to an employer match. It pays to contribute enough out of your paychecks to snag that match in full. If you don't, you'll be giving up free money.

ALSO READ: 3 Reasons to Stop Funding Your 401(k) ASAP

Once you turn 50, you get the option to make catch-up contributions in your IRA or 401(k). For the former, you can put in an extra $1,000 a year. For the latter, you can contribute an extra $6,500. It pays to pump that additional money into your nest egg so you have more retirement income to look forward to.

Healthcare could end up being a huge expense in retirement. Therefore, it pays to put money into a health savings account, or HSA, if you're eligible. Qualifying hinges on being enrolled in a high-deductible health insurance plan.

ALSO READ: Here's the Best Way to Benefit From Your HSA

You might think it's best to shy away from stocks as retirement nears. But if you still have five years or more to go until retirement, then it pays to keep putting money into stocks. That way, you can fuel your savings' growth.

If you've been tackling retirement planning on your own so far, it may be time to call in an outside professional. A financial planner can help you map out your goals and make smart decisions that increase your likelihood of achieving them. They can also help address financial concerns you might have about retirement.

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It's hard to get an exact handle on your retirement expenses if that milestone is still a decade or more away. But it's a good idea to put together a sample budget so you can get a sense of what retirement might cost you. From there, you can see how well your savings might stack up.

The last thing you want in retirement is a credit card balance hanging over your head. If you have credit card debt, now's the time to pay it off. Doing so could also save you a lot of money on interest.

ALSO READ: Your Credit Card Debt May Be About to Get More Expensive. Here's Why

Many retirees are burdened with healthcare bills. Now's the time to read up on what healthcare might cost in retirement and make sure you're factoring the right numbers into your budget. That includes learning more about how Medicare works.

Many seniors end up needing long-term care in their lifetime. And unfortunately, Medicare won't pay for it. That's why it's a good idea to secure long-term care insurance during your mid- to late-50s. Having a policy in place could spare you astronomical costs down the line.

ALSO READ: 70% of Seniors Will Face This Giant Expense -- and Many Are Unprepared

If the stock market crashes once you're retired, you could end up in a dire financial situation. That's why it's important to have enough cash set aside to cover 12 months' to two years' worth of expenses. You can allocate some of your IRA or 401(k) for that purpose, or you can start building a retirement emergency fund during your 50s.

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During your 50s, you may not be quite ready to start the countdown to retirement. And you may not be eager to end your career. But it still pays to use that period of life to ramp up retirement planning and savings so that once you are ready to leave the workforce, you're in a good place.

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