Published: February 2024 | Last updated: May 2026
Your 50s are when financial decisions carry the most weight. You're close enough to retirement to feel its pull, but still with enough time to meaningfully change the outcome.
For many Australians, this is the decade that determines the difference between a comfortable retirement and a stretched one. Whether you're ahead of where you'd like to be or playing catch-up, there are real moves you can make right now to improve your position.
Here's what you need to know, and how a financial advisor can help you get there.
According to the Australian Bureau of Statistics, 42% of Australians aged 45 and over were retired in 2024-25, with the average retirement age sitting at 63.8 years. While retiring before 65 is still common, the age pension isn't available until age 67 for people born after 1957, so it's important to have a plan that supports you comfortably in the years before government support becomes available.
Even if you plan on working into your 60s, building wealth allows you to travel and live more freely once you become a retiree. Whether you're envisioning a comfortable retirement, pursuing long-held dreams, or simply seeking financial security for yourself and your loved ones, your wealth building journey is far from over!
According to KPMG's 2024-25 household wealth analysis, the average net worth of an Australian household in the 45–54 age group is just over $2 million, rising to $2.5 million for those aged 55–64.
While those figures might seem surprising, they're largely driven by property — households in their early 50s hold an average of $1.44 million in real estate, $509,000 in superannuation, and $278,000 in shares, offset by around $492,000 in loans.
By the mid-50s to early 60s, super balances have grown to an average of $756,000 and debt has reduced significantly to $318,000. Your net worth is a picture of everything you own and everything you owe, not just your cash in the bank.
If your finances are not where you want them to be in your 50s, it’s not too late to increase your assets and decrease your debts. Here are some tips for how to build wealth in your 50s.
Just 36% of Australians say they create a budget. Whether you do or don’t have one in place, your 50s are a wise time to re-examine your budgeting habits and update your financial plan. On top of monthly spending, you may want to take a look at your debt payoff schedule and your investment contributions.
Ask yourself: if you continue on the same financial path, can you afford to retire in five years? What about 10 years? A financial advisor is a huge asset in this department. They can help you set financial goals and develop a tailored retirement plan to get you there. They may also identify places where you are spending too much on insurance or could reduce debt faster.
Retiring comfortably is much more difficult if you have a significant amount of debt. This is especially true if you have non-deductible debt payments that don’t serve as a tax offset. Prioritise your debt payments accordingly.
You may also want to be judicious about how much you borrow for your kids to attend a university, start a business, or explore other endeavours. Taking on HECS loans or other funding in your 50s could cut into your disposable income when you retire. While it’s understandable that you’d want to help out family with their goals, you should make sure any assistance you offer is aligned with your broader financial goals.
According to the ASFA Retirement Standard, you'll need a super balance of at least $630,000 to enjoy a comfortable retirement as a single. For couples, that figure rises to $730,000. If you're not on track to reach that by age 67, now is the time to look at increasing your contributions.
One option worth considering is spouse contributions. If your partner earns a low income or doesn't work, contributing to their super can help build your combined retirement savings while also earning you a tax offset of up to $540 per year.
Your 50s could be the last chance you have to make meaningful changes to your super investments before you hit retirement age. Therefore, taking a more conservative approach as you enter your final working years could be prudent.
If you don’t think you have enough money to retire, there are a few ways to boost your superannuation balance. First, start making additional contributions if you’re able to. From 1 July, 2024, the maximum contribution per year has been $30,000.
You can also search for lost super money. Super money gets lost when you change names, jobs, or other personal details at some point and a super account becomes inactive. The money is sent to the Australian Tax Office (ATO), who can reunite you with the funds by putting it into your active super account. You can search for money online using your myGov account.
Finally, you may qualify for a Transition to Retirement (TTR) pension. This programme allows some people under the age of 65 to access up to 10% of their super each year. You can use this money for expenses, or invest it elsewhere if you think you can get a better return.
Downsizing your home has several benefits. Not only does it reduce your housing costs in your 50s and free up more money for savings, but it may allow you to make a huge super contribution. The ATO allows you to contribute up to $300,000 from the sale of a home into your super if you qualify for the programme. You must be over 55 years old, have owned the home for at least 10 years, and meet certain other criteria.
As you reach the end of your career, now is not the time to use bonuses to splurge on major purchases. Instead, you can build wealth by investing your professional bonuses. You’re still years out from the government Work Bonus programme while you’re in your 50s (you must meet Age Pension requirements), but you can still build a plan for how to invest those savings if you take advantage of them later.
The good news about building wealth in your 50s is that you don’t have to do it alone. A financial advisor can bring years of experience to the table. Not only that, but a financial planner is able to bring a more objective eye to your finances and let you know where you’ve been making mistakes or missing opportunities.
This is the stage in your life where the goal is to make as much passive income as possible. In fact, some people may find that the interest they earn on their investments could outsize their income from working. As more and more of your net worth is tied up in savings accounts, stocks, equities payments, and other investments, it’s only natural that an experienced guiding hand can help.
A financial advisor does much more than create a budget. Here's how they can help across two key areas:
A full picture of your financial health. A professional review can surface areas you may be overspending, underinvesting, or missing entirely.
Timely recommendations. As interest rates shift and government rules change, an adviser helps you adjust quickly rather than react too late.
Investment guidance. Advisors help take emotion out of investment decisions and keep your portfolio aligned with your goals.
Business finance referrals. While financial advisors can't draw up legal documents, they can connect you with the right business advisory and corporate finance specialists.
Defining your goals. Whether it's retiring at 60, funding your children's education, or building a property portfolio, an advisor can map out a strategy to get you there.
Estate planning. As retirement approaches, they can work alongside your legal professional to make sure your estate plan reflects your current wishes.
Personal insurance. They can also help structure a personal insurance strategy that protects you and your family from life's unexpected events.
Building wealth in your 50s is all about refining where you invest and maximising both passive income and super contributions. It’s not too late to set yourself up for a comfortable retirement. Still, being in your 50s does require more urgency in decades past.
Hiring a financial advisor is the first step in making wise investment decisions. Here’s more information about the benefits of hiring a financial advisor and five common myths that we’ve debunked.
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