• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

SuperGuide

Superannuation and retirement planning information

  • Join SuperGuide Premium
  • Account
  • Log In
  • Join SuperGuide Premium
  • Account
  • Log In
  • How super works
    • Super for beginners
    • Super rules
    • Employers guide to super
    • Super contributions
    • Super and tax
    • Accessing super
    • Super news
    • Women and super
    • Super tips and strategies
    • How-to guides
    • Super quizzes
    • Superannuation Q&As
    • Superannuation glossary
  • Super funds
    • Best performing super funds
    • Super fund rankings
    • Best performing pension funds
    • Pension fund rankings
    • Super fund average returns
    • Super investing strategies
    • Comparing super funds
    • Choosing a super fund
    • Choosing an investment option
    • Super fund fees
    • Insurance and super
    • Super fund profiles
  • SMSFs
    • SMSFs for beginners
    • SMSF administration
    • SMSF checklists
    • SMSF compliance
    • SMSF investing
    • SMSF pensions
    • SMSF strategies
    • SMSF Q&As
  • Plan your retirement
    • Retirement planning for beginners
    • When should I retire?
    • How long will I live?
    • How much super do I need?
    • Will I get the Age Pension?
    • How much will I spend in retirement?
    • Financial advice
    • Retiring overseas
    • Preparing for retirement
    • Retirement planning strategies
    • Retirement calculators and reckoners
  • In retirement
    • Income in retirement
    • Super lump sums
    • Super pensions
    • Age Pension
    • Working in retirement
    • Life in retirement
    • Senior concessions and services
    • Aged care
    • Estate planning
    • Super death benefits

Home / How super works / Super for beginners / Super tips and strategies if you are in your 50s

Super tips and strategies if you are in your 50s

October 6, 2020 by Janine Mace Leave a Comment

Reading time: 4 minutes

On this page

  • 1. Review and boost your retirement savings
  • 2. Check when you can access your super savings
  • 3. Reassess your investment option
  • 4. Review your insurance cover and beneficiaries
  • 5. Consider how and when you want to receive your super benefit
  • 6. Consider getting independent financial advice
  • 7. Make tax-deductible contributions
  • 8. Consider a transition-to-retirement strategy
  • 9. Check if you can make a small business contribution
  • 10. Consider bringing your contributions forward

In your 50s, you’ve turned the corner and are heading into the final stretch of your career before reaching retirement.

Now is the time to take a closer interest in your super and think about the lifestyle you would like in retirement. There’s still time left to boost your super account if necessary and to review the way your super is invested to ensure you reach your financial goals.

To help ensure you are on the right track, check SuperGuide’s list of useful tips and strategies for super savers in their 50s. Not all the tips suit everyone, but our list will help you identify some of the key super-related issues you need to consider.

1. Review and boost your retirement savings

Retirement may still be a few years off, but this is the time to get serious and ensure your super is in order. Now is a good time to calculate your likely nest egg at retirement and review whether you are on track to achieve it.

Once you have estimated how much you are likely to have at retirement, compare this with how much you will need to fund your planned retirement activities and lifestyle.

If your expenses are a bit lower because the mortgage is paid off or the kids have left home, now can be a good time to boost your super account by setting up a salary sacrifice arrangement with your employer if you don’t already have one. If you make extra super contributions from your pre-tax salary into your super account, you not only increase your super balance, you may also reduce your annual bill.

Are you with a top performing super fund?

Click here to compare more than 90 Australian super funds, including returns, fees, features, awards and more.

For more information see the following SuperGuide articles:

  • How much super do I need to retire?
  • Is $500,000 in super enough to retire on?
  • Salary sacrifice and super: How does it work?
  • What super contributions are best for me?

2. Check when you can access your super savings

Depending on your age, you may be able to get your hands on your super savings during your 50s. But you need to have both reached your preservation age (which varies depending on your date of birth) and met a condition of release.

Once you apply to access your super benefit, you can generally choose to withdraw an amount from your super as an income stream, lump sum or a combination of the two.

For more information see the following SuperGuide articles:

  • What age can I access my super (Preservation Age)?
  • When can I access my super? All conditions of release explained
  • Early release of super due to severe financial hardship
  • Early release of super on compassionate grounds
  • Early release of super due to COVID-19 (coronavirus)

3. Reassess your investment option

Now you’re in your 50s, you will have a better idea of when you are likely to leave the workforce and the amount of retirement savings you will need. That makes it a good time to reassess your current investment strategy and decide if it’s still the right one to pursue until retirement.

It is also the right time to start learning about retirement investing and to check if you are likely to qualify for the Age Pension or Commonwealth Seniors Health Card. Both these government benefits can make a real difference to how much income you need in your retirement.

For more information see the following SuperGuide articles:

  • Choosing an investment option
  • Video: Which investment option is right for you?
  • How to change your investment option: 6 points to check before you switch
  • How do I apply for the Australian Age Pension?
  • Commonwealth Seniors Health Card: What is it and how to apply

4. Review your insurance cover and beneficiaries

During this decade you may find your financial commitments lessen and you become mortgage free. This makes it a sensible time to review whether you need to change the level of your insurance protection within super. Some people, of course, may find they need to increase their insurance cover because they have a new family and young children.

Divorce or separation may also mean the insurance beneficiaries you named a few years ago are now no longer appropriate. Check your nominated beneficiaries so your benefit doesn’t end up with a former partner, or a new financial dependant doesn’t miss out. Also consider a non-lapsing death benefit nomination if it’s available, as a binding nomination expires after three years if you don’t renew it.

For more information see the following SuperGuide articles:

  • Insurance inside super: A definitive guide
  • Life insurance through super: A definitive guide
  • Who gets your super when you die? A guide to death benefit nominations
  • A simple guide to what tax is payable on super death benefits

5. Consider how and when you want to receive your super benefit

In the final sprint to retirement, it’s wise to start thinking about how you want to take your super benefit – lump sum, income stream or a combination of both. That way you can think about what strategy will suit you best and what actions you need to take in the final years of your working life.

Consider whether it’s better to wait until you are age 60 to access your savings, as most people can take their super benefit tax free once they reach this age.

For more information see the following SuperGuide articles:

  • How to plan for your retirement
  • Starting a pension from your super
  • Your tax guide to accessing your super under age 60

6. Consider getting independent financial advice

For some people, being in their 50s means it’s a sensible time to talk to an independent financial adviser about their retirement plans.

A good financial adviser can help you work out how much you are likely to have in retirement and whether you need to make additional contributions in the next few years to reach your retirement income goal. Advisers can also explain any tax you will need to pay when you receive your super benefit and discuss how best to invest your super benefit once you have left the workforce.

For more information see the following SuperGuide articles:

  • Super advice: How to find a suitable financial adviser
  • How much does financial advice cost?
  • How to create an investment portfolio in retirement
  • How the 10/30/60 Rule can help achieve your retirement plans

7. Make tax-deductible contributions

In your 50s, you may find your income is still high, so it makes sense to boost your super account with some voluntary super contributions if you can. You may be able to claim a tax deduction for them as well, leaving you with a lower tax bill.

Tax-deductible super contributions can come from a variety of sources including your take-home pay, savings, an inheritance or the sale of an investment asset.

Advertisement

For more information see the following SuperGuide articles:

  • How do tax-deductible superannuation contributions work?
  • Your simple guide to Superannuation Guarantee (SG) contributions

8. Consider a transition-to-retirement strategy

If you are aged 55 or over, consider starting a transition-to-retirement (TTR) pension, as they allow you to reduce your working hours while using income from your super to maintain your lifestyle.

You can also salary sacrifice some of your salary into super to save tax and use a TTR pension to replace some or all your lost income, even if you continue working full time.

For more information see the following SuperGuide articles:

  • Guide to transition-to-retirement pensions (TTRs or TRISs)
  • Did tax kill the transition-to-retirement magic pudding?

9. Check if you can make a small business contribution

If you are planning to sell your small business prior to retirement, you may be able to reduce your capital gains tax (CGT) bill and top up your retirement nest egg at the same time. The government’s small business retirement exemption could allow you to make a significant contribution into your super account if you are eligible.

For more information see SuperGuide article The small business retirement exemption explained.

10. Consider bringing your contributions forward

If you want to give your super account a last-minute top up, consider making a large non-concessional (after-tax) contribution.

Under the bring-forward rules, you can use three years of your non?concessional contribution cap ($100,000 in 2020/21) to make a significant contribution into your super account.

For more information see SuperGuide article A super guide to understanding the bring-forward rule.

Are you with a top performing super fund?

Click here to compare more than 90 Australian super funds, including returns, fees, features, awards and more.

Learn more about retirement planning strategies in the following SuperGuide articles:

Am I eligible for the Age Pension?

March 9, 2021

What age should I retire?

December 1, 2020

Super tips and strategies if you are in your 60s or 70s

October 6, 2020

Countdown to retirement: Tips to help kickstart your retirement plans

June 1, 2020

What strategies can I consider to reduce tax on my super pension?

April 1, 2020

Is a bucket strategy the solution for your retirement income plan?

March 23, 2020

Guide to transition-to-retirement pensions (TTRs or TRISs)

March 22, 2020

Learn more about super housekeeping strategies in the following SuperGuide articles:

Life insurance through super: A definitive guide

January 18, 2021

Super tips and strategies if you are in your 20s

October 6, 2020

Super tips and strategies if you are in your 30s or 40s

October 6, 2020

Super tips and strategies if you are in your 60s or 70s

October 6, 2020

The easy way to find and consolidate your lost super

October 1, 2020

What to do if your employer doesn’t pay your super

September 18, 2020

10 points to check on your annual super fund statement

September 2, 2020

10 EOFY housekeeping tips for your super

May 1, 2020

10 key super fund fees: What are they and why am I paying them?

November 20, 2019

Related topics

How super works Super for beginners

Related features

Super tips and strategies

IMPORTANT: All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether any information on SuperGuide is appropriate to you before acting on it. If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions. Comments provided by readers that may include information relating to tax, superannuation or other rules cannot be relied upon as advice. SuperGuide does not verify the information provided within comments from readers. Learn more

© Copyright SuperGuide 2009-21. Copyright for this article belongs to SuperGuide Pty Ltd, and cannot be reproduced without express and specific consent. Learn more

Primary Sidebar

How super works
Super for beginners
Super rules
Employers guide to super
Super contributions
Super and tax
Accessing super
Super news
Women and super
Super tips and strategies
How-to guides
Super quizzes
Superannuation Q&As
Superannuation glossary
Super funds
Best performing super funds
Super fund rankings
Best performing pension funds
Pension fund rankings
Super fund average returns
Super investing strategies
Comparing super funds
Choosing a super fund
Choosing an investment option
Super fund fees
Insurance and super
Super fund profiles
SMSFs
SMSFs for beginners
SMSF administration
SMSF checklists
SMSF compliance
SMSF investing
SMSF pensions
SMSF strategies
SMSF Q&As
Plan your retirement
Retirement planning for beginners
When should I retire?
How long will I live?
How much super do I need?
Will I get the Age Pension?
How much will I spend in retirement?
Financial advice
Retiring overseas
Preparing for retirement
Retirement planning strategies
Retirement calculators and reckoners
In retirement
Income in retirement
Super lump sums
Super pensions
Age Pension
Working in retirement
Life in retirement
Senior concessions and services
Aged care
Estate planning
Super death benefits
Advertisement
Compare super funds

Footer

Important: Disclaimer

All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs.

You should consider whether any information on SuperGuide is appropriate to you before acting on it.

If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions.

Learn more

About SuperGuide

SuperGuide is Australia’s leading superannuation and retirement planning website. Learn more

Superguide Pty Ltd ATF Superguide Unit Trust as a Corporate Authorised Representative (CAR) is a Corporate Authorised Representative of Independent Financial Advisers Australia, AFSL 464629

  • Contact us
  • Advertise on SuperGuide
  • Careers

Before using this website

  • New to SuperGuide?
  • Terms and Conditions of Use
  • Financial Services Guide
  • Privacy Policy and Privacy Collection
  • Copyright Policy
  • Editorial Policy and Complaints
  • Disclaimer

  • SuperGuide Premium
  • Subscriber feedback
  • Sitemap