When you reach your 50s, retirement stops feeling like a distant goal. It becomes a real part of your planning. You start thinking less about building wealth and more about how your savings will actually support the next chapter of your life.

One of the biggest questions people ask at this stage is simple:

How much should I be saving right now to retire with confidence?

There is no single number that works for everyone. But there are practical guidelines that can help you understand where you stand and what adjustments may help you prepare.

Why Savings Look Different in Your 50s

Saving in your 50s is different from saving earlier in life. At this stage, many people are:

• Peaking in their careers
• Supporting adult children
• Helping aging parents
• Paying off mortgages
• Thinking seriously about the retirement date ahead

And for the first time, the question changes from “How much should I save?” to “Do I have enough to retire when I want to?”

If retirement is within 5 to 15 years, the decisions you make now can have a meaningful impact on your long-term plan.

A Helpful Guideline: Aim to Save 20 Percent of Gross Income

For many people in their 50s, saving around 20 percent of gross income is a helpful target. This includes your contributions plus any employer match.

Why 20 percent?

Because people in their 50s:

• Have fewer working years left to save
• Often want to retire in a specific window
• Need a buffer for rising healthcare costs
• May want more flexibility in how and when they work later

This percentage is not a rule. It is simply a guide to help people understand what may be needed when retirement is approaching.

Some may need less. Some may need more. It depends on lifestyle, spending, taxes, investments, and goals.

How Social Security Affects Your Savings Target

Social Security usually does not replace enough income for people to maintain the lifestyle they want in retirement. For higher earners, the percentage replaced is often smaller.

This means personal savings often play a large role in long-term planning.

A helpful way to think about it:

Social Security provides a foundation. Your savings fill the gap.

Understanding the size of that gap is one of the most important retirement steps in your 50s.

The Benefit of Catch-Up Contributions at Age 50+

Once you reach age 50, the IRS lets you save more each year.

• You can contribute beyond the standard 401(k) limit
• You can add extra funds to IRAs
• You can strengthen your long-term plan in the years right before retirement

These extra contributions can offer meaningful benefits, especially if you feel behind or want more flexibility in the future.

What If You Feel Behind? Many People Do

Feeling behind is incredibly common in your 50s.
Life gets busy, priorities shift, and savings may not always grow evenly from decade to decade.

Here are steps that can help:

1. Get clear on spending

Knowing what you spend today is the first step to estimating retirement income needs.

2. Increase savings slowly

Raising your savings rate by 1 or 2 percent each year can make a big difference.

3. Review investments

Your portfolio should match your goals, not someone else’s.

4. Use tax planning to your advantage

Coordinating Roth, taxable, and pre-tax accounts gives you more control later.

5. Build a realistic timeline

Your desired retirement date affects how much you may need to save right now.

Why Your Savings Rate Is Only One Piece of the Picture

Saving is only part of the equation. Retirement planning brings together multiple pieces, including:

• How your investments are structured
• When and how you plan to take income
• How taxes may affect withdrawals
• How long your savings may need to last
• What role Social Security may play
• Whether you plan to leave a legacy

Savings matter. But retirement readiness is about the whole plan, not just one number.

A Practical Way to Think About It

If you are in your 50s and planning to retire within the next decade:

Saving 20 percent of your income can be a helpful starting point.​
It is not a guarantee. It is simply a benchmark that often works for people at this stage who want more control and clarity over their retirement timeline.

The exact amount you need depends on your income, lifestyle, investments, healthcare needs, and personal goals.

Final Thoughts

Your 50s are an important window in retirement planning. You are close enough to see the finish line, yet far enough away to make meaningful adjustments. Whether you feel ahead, behind, or somewhere in between, small improvements now can support more flexibility later.

Saving intentionally, reviewing your plan regularly, coordinating taxes, and making thoughtful decisions about retirement accounts can all help you move into the next chapter with greater clarity and confidence.

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​Keeping wealth in focus,

The MY Wealth Management Team