If, like me, you are between 45 and 50, you probably grew up on Saturday morning cartoons and cassette mixtapes. Remember the early days of MTV? Renting VHS tapes at Blockbuster and hearing that dial-up internet screech defined your teen and early adult years.
Now, you’re in a new phase: Your financial “teen years” are behind you, and retirement is starting to feel real. As a Certified Financial Planner™, I can tell you this: The choices you make over the next decade will determine whether retirement feels like freedom or frustration.
Think of it this way: You’re in the second act of a John Hughes movie. There’s still plenty of time to turn things around, but you can’t afford to coast.
In my experience, every situation is unique, but I’ve compiled a Retirement Readiness Checklist for those 45 to 50 to help you think through important considerations for the coming years.
Here's your Retirement Readiness Checklist for Ages 45–50:
- Know Your Number
- Calculate how much you’ll need for retirement (best done by looking at your monthly and annual expenses).
- Run a projection to see if your current savings rate will get you there. (I would love to help you with this!)
- Supercharge Your Savings
- If you don’t have a 3-to-6-month emergency fund, work toward building one.
- Contribute the maximum to your 401(k) or workplace plan.
- Use IRAs (or backdoor Roth IRAs if eligible) to diversify your tax buckets.
- Set yourself up now to take advantage of catch-up contributions at 50.
- Attack Debt
- Eliminate high-interest debt (credit cards aren’t your friend).
- Decide if paying off your mortgage before retirement is part of your plan.
- Avoid new debt if possible.
- Invest Intentionally
- Keep enough stocks for growth.
- Consider consolidating old accounts so it’s easier to see the big picture.
- Protect Your Assets
- Review life, disability, liability, umbrella, and health insurance.
- Update wills, powers of attorney, and beneficiaries.
- Define Your Vision
- Where will you live? What lifestyle do you want?
- Plan for longevity—retirement could last longer than the run of The Simpsons.
Final Word
The youngest Gen Xers still have the gift of time and compounding. You’re old enough to be serious, but young enough to build the future you want. Retirement doesn’t have to feel like an episode of Survivor—with the right plan, it can feel more like the encore of your favorite band from the 90s: familiar, satisfying, and worth the wait.
Beth H. Watson is a CERTIFIED FINANCIAL PLANNERTM professional at Corner Post Financial Planning.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.