If you’re in your 30s or 40s, preparing for retirement may or may not be on your radar. Life events, such as buying a home and raising a family, combined with excelling in your career, may be taking up your time. But these busy years fly by, and it’s important to meet certain financial milestones by age 50 — and plan to get recommended health screenings by age 50, too — to be on track for living well in retirement.
Saving for retirement is a lifelong process. But you may feel more pressure to save and make the most out of your nest egg as you approach 50. Generally speaking, by the time you reach 40, it’s recommended that you have saved two to three times your annual salary, and by age 50, you should’ve saved almost four to six times your yearly earnings. If this seems out of reach at this moment, don’t worry. You still have time to save when you aim to meet the following financial goals by age 50.
When the unexpected happens, such as car issues, medical bills, or home repairs, emergency funds can help you avoid or minimize new debt. The amount to save depends on your financial situation, but a general rule is to have enough to cover at least three months of expenses. You’ll want to keep the money in its own account — one that earns a high interest rate but allows for easy access when needed.
Most organizations that offer a 401(k) plan offer an employer match. This is basically “free money,” so take advantage it by at least contributing enough to meet their match percentage, if possible.
If your employer doesn’t offer a match, it’s still wise to contribute to a retirement account as a means for general savings and tax benefits. This is as long as the return on your investment is greater than the highest interest rate of your debt.
Now that you have emergency funds set aside and may be investing in your retirement savings, you can really focus on paying off debt. The first step is to make a budget and track your expenses, so you know what you can allocate. Then, start with the account that has the highest interest rate and eliminate it first before moving on to the next.
You can stretch your dollars when you avoid impulse purchases and small luxuries that add up, like lunch and coffee.
Before you start, remember, your children can apply for scholarships, student loans, and grants to pay for their college education. You don’t have those options, so your retirement savings should be used for retirement. If you tap into your 401(k) or IRA before age 59 ½ for this purpose or others, your withdrawal may incur a 10% penalty or be taxable. Instead, open a 529 plan for tax-free growth on your education savings.
During this point in your life, it’s easy to feel invincible or be so busy that you may not consider how the unexpected can have detrimental impacts on your finances. Consider medical emergencies and their resulting bills, which have become a top source of financial distress for all age groups. This is where supplemental insurance can help lessen your out-of-pocket costs.
In the case of medical debt, look at your current insurance plan and determine where you may have gaps in coverage. Do you have dental insurance? Have you incurred debt due to a hospital stay or perhaps short-term care or extended care? Supplemental plans are available to help you prepare for health emergencies and protect your savings.
At any age, you should be seeing your primary care physician every year. This becomes even more important as you grow older and face health challenges. Annual physicals after age 40 serve to check your blood pressure, cholesterol, blood sugar, and other health markers. They also ensure you get recommended vaccines and meet necessary health screening guidelines by age 50 to help safeguard your future.
It’s important to note that, while some medical tests recommended at age 50 and below are the same for all people, others will vary by gender.
Colorectal cancer is on the rise in younger people and has become a leading cause of death for both men and women. That’s why, in recent years, the recommended age for colorectal cancer screening dropped from 50 to 45, and exam options have expanded to include stool testing or a virtual colonoscopy. Still, colonoscopies are considered your best choice since doctors can remove any precancerous polyps, or bumps, during the physical exam. Your primary care physician can help guide you to a decision.
Women are recommended to get an annual mammogram from 45 to 54 years old for early breast cancer detection. If you’ll be scheduling your first mammogram, please know it’s common to be called back for a second. Also, if it’s determined that you have dense breast tissue, you may need additional imaging, such as with an ultrasound or magnetic resonance imaging (MRI), for a different perspective.
Women should also continue to get a cervical cancer screening. These are done every three years with a pap smear or every five years in conjunction with an HPV test.
If you have an elevated risk for prostate cancer, you should talk with your primary doctor about your need for screening. High risk includes men aged 40 and above with two or more first-degree relatives who were diagnosed with prostate cancer at an age younger than 65. It also includes men aged 45 and older who are Black and/or have a father or brother who was diagnosed with prostate cancer at an age younger than 65. If you’re not among these groups, you can wait until you turn 50 to discuss prostate cancer screening with your physician.
Prior to turning 50, you likely only need vaccines that are recommended annually, such as for influenza or COVID-19. This is unless you’re due for the Tdap vaccine, which protects against tetanus, diphtheria, and pertussis (whooping cough) and is suggested every 10 years.
Other considerations may include varicella, if you never had chickenpox as a child, or the hepatitis A, B, or C vaccines. Talk with your doctor about your needs at your annual physical. Once you turn 50, the shingles and pneumococcal vaccines will be recommended.
Your lifestyle may call for other medical exams. Do you work outdoors or spend a lot of time in the sun? You may need to visit a dermatologist for skin cancer screening.
If your work environment is loud or you ride a motorcycle, you may need to check your hearing.
Talk to your primary care physician about your concerns, as well as your family’s medical history, so that you can identify any issues early and protect your health as you move closer to your golden years.
Photo credit: iStock
Wellabe offers life and supplemental health insurance plans to help you prepare for good days and bad. We’ll always be here to empower you to be well — well prepared, well protected, and well loved.
