How to amplify up your retirement in your 50s

So, you're in your 50s. The kids are almost out of the house, your bond might be paid up, and your career is pretty solid but then the thought suddenly hits “Retirement? Yikes. Am I behind? Where do I even start?"

First of all, take a breath. Whether you’re looking to boost your existing savings or you’re just getting started, the good news is - it’s not too late. In fact, your 50s can be your financial power decade.

Here’s how to make the most of it:

1. Take stock of your finances, even if it’s scary

Before you can boost or begin your savings, you need to know where you stand. Take the time to collate everything – your pension, RA, old preservation funds, investments, even that tax-free savings account you forgot about. The most important thing – be honest with yourself about your debts too.

This step isn’t about judgment; it’s about clarity. Once you know what you're working with, you can make smarter choices.

2. Set a realistic retirement goal

Ask yourself: How much will I need per month when I retire? Factor in your lifestyle, healthcare and medical aid, and how long you might live (yes, we're going there). The 10X retirement calculator can help break it down; and the number you see on the calculator, that’s your new target.

3. Top up your retirement contributions

You’re allowed to put more into your retirement funds. Take advantage of it. You’re allowed to contribute up to 27.5% of your taxable income (capped at R350,000 a year) to a retirement annuity (RA), employer fund, or pension fund and can still claim the tax benefit. That’s a smart way to get SARS to help you save more. Additional Voluntary Contributions (AVCs) is another option that allows you to add extra money, over and above your regular contributions and directly into your company’s retirement fund. This not only boosts your savings but also helps reduce your taxable income. Even small, consistent top-ups can have a significant impact thanks to compound growth. Think of AVCs as a way to “fast-track” your retirement readiness while still enjoying the tax benefits.

4. Kill off any bad debt

Car loans, personal loans, credit cards – these are sure to be retirement savings killers. Aim to pay off all your short-term debt before retirement, starting with the highest-interest ones. Once those are gone, redirect what you were paying into your savings.

5. Consider delaying the retirement

Not what you wanted to hear? Consider this...if you can work just 2–5 years longer, it gives your savings more time to grow and reduces the number of years you’ll need to rely on the money you saved up for retirement. The best part: you could use those years to downsize or simplify your lifestyle.

6. Play catch-up on your investments

Don’t just rely on your retirement fund as life can get expensive so if you withdrew cash from your savings pot, consider a 10X tax-free savings account (TFSA), a 10X unit trust or perhaps even a side hustle that earns passive income.

Every extra rand counts, and compound interest is still your friend.

But wait, what If you’re only starting now?

If you're just getting started in your 50s, don’t beat yourself up. You're not alone and all of the steps above still apply.

Start where you are. Even if you can only afford R1000 a month, please just start. It builds the habit. Then increase it every time you get a raise or cut expenses.

The most important thing – once you get moving, don’t stop. If you need to find the product that works for you, contact one of our friendly Investment Consultants who can help you decide what product fits your retirement needs and lifestyle.