Why Planning for Retirement in Your 50s Matters

Retirement might feel like a distant milestone, but for those in their 50s, it’s right around the corner. Millennials—often defined as those born between 1981 and 1996—may not have reached their 50s yet, but many have parents or older family members who are. 

Understanding the challenges and strategies of retirement planning for this stage of life is key to making informed financial decisions, whether for yourself or your loved ones.

For those in Middle Tennessee—Nashville, Franklin, Brentwood, Spring Hill, College Grove, Hendersonville, Nolensville, and Fairview—the cost of living, tax landscape, and local investment opportunities all play a role in how retirement planning should be approached.

Without the right strategies, individuals risk outliving their savings, paying too much in taxes, or missing opportunities for wealth preservation.

William Bevins, CFP, CTFA, is a local financial planner who helps individuals navigate these challenges by developing personalized strategies for long-term financial security.

His insights into savings, investment management, and tax planning can make a meaningful difference in securing a comfortable retirement.

How Much Should You Save for Retirement in Your 50s?

One of the most common questions about retirement planning is: “How much do I need?” While the answer depends on lifestyle choices, healthcare expenses, and investment returns, a general rule is to have six to ten times your annual salary saved by age 60.

Key Factors That Influence Retirement Savings:

1. Current Savings Balance – Are you behind, on track, or ahead?

2. Projected Retirement Age – Retiring at 65 versus 70 makes a significant difference.

3. Expected Expenses – Housing, healthcare, travel, and discretionary spending must be accounted for.

4. Social Security & Pension Income – These sources can supplement savings but shouldn't be relied upon entirely.

Managing Your Retirement Savings in Your 50s

Once a retirement nest egg has been built, managing those funds properly is just as important as saving them. The biggest risks facing millennials include inflation, longevity risk, and market downturns.

Key Strategies for Managing Retirement Savings:

- Rebalance Your Portfolio: In your 50s, it’s wise to evaluate whether your investment mix is too aggressive or too conservative.

- Diversify Investments: Holding a mix of stocks, bonds, real estate, and other assets can help manage risk.

- Avoid Panic Selling: Market fluctuations are inevitable. Having a plan in place prevents emotional decision-making.

Investing Wisely While Keeping Suitability in Mind

1. Risk Tolerance: Adjusting investments based on personal comfort with volatility.

2. Income-Generating Investments: Dividend-paying stocks, bonds, and real estate can provide steady income.

3. Tax-Efficient Investing: Choosing investments that minimize capital gains and taxable income.

Investment Considerations for Those Nearing Retirement:

1. Risk Tolerance: Adjusting investments based on personal comfort with volatility.

2. Income-Generating Investments: Dividend-paying stocks, bonds, and real estate can provide steady income.

3. Tax-Efficient Investing: Choosing investments that minimize capital gains and taxable income.

The Role of Taxes in Retirement Planning

One of the most overlooked aspects of retirement planning is tax strategy. Taxes can take a significant portion of retirement income if not properly managed.

Key Tax Considerations for Retirement:

- Tax Diversification: A mix of tax-deferred, tax-free, and taxable accounts helps create flexibility.

- Required Minimum Distributions (RMDs): At age 73, RMDs begin for traditional IRAs and 401(k)s, creating taxable income.

- Roth Conversions: Converting traditional IRA funds into a Roth IRA can reduce taxable income in retirement.

Why Work With a Financial Professional Like William Bevins?

Retirement planning in your 50s involves numerous moving parts—savings, investments, taxes, and income strategies all must work together. A personalized approach is key to making informed decisions that align with financial goals.

Working with William Bevins Offers:

✔️ A Tailored Retirement Plan – Based on income, savings, and lifestyle goals.

✔️ Investment Guidance – Strategies designed to balance growth and risk.

✔️ Tax Planning Strategies – Ways to reduce tax liability in retirement.

✔️ Ongoing Financial Advice – Adjustments as financial situations evolve.

To begin crafting your retirement plan, visit WilliamBevins.com and schedule a consultation today.

Your Retirement Plan Starts Now

For those in their 50s, the time to act is now. Whether catching up on savings, refining investment strategies, or planning for taxes, every step taken today can contribute to a more secure future.

Millennials may not be facing retirement yet, but understanding these principles is crucial—for their parents, for themselves, and for their own financial future. Encouraging loved ones to seek professional financial guidance is one of the best ways to support them.

William Bevins, CFP, CTFA, offers comprehensive financial planning services tailored to the unique needs of those in Middle Tennessee. To learn more about how he can help with your retirement planning, visit WilliamBevins.com.

Disclosures

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Fixed income/bond risks include interest rate and credit risk. Rising interest rates will typically cause the prices of bonds and other debt securities to fall. Portfolio diversification does not ensure a profit or guarantee against a loss.