5 Money Mistakes You Can’t Afford to Make in Your 50s

How to fix it: One of the benefits of creating a budget is identifying how much you can afford to contribute to a 401(k) or individual retirement account (IRA), especially if you find expenses you can pare back. “If you can get control of some of those spending items, you can pump up retirement savings,” Hannon says.

AARP’s retirement calculator can help you determine whether you’re saving enough to reach your retirement goals. “Trying to guess how much you need is a bad plan,” Hannon says. Knowledge can be powerful: Among workers who tried to calculate how much they’ll need in retirement, 52 percent started to save more, the Employee Benefit Research Institute’s 2024 Retirement Confidence Survey found.

In 2026, most workers can contribute up to $24,500 to a workplace retirement plan such as a 401(k), but those in their 50s can make an additional catch-up contribution of up to $8,000, for a total of $32,500. (Savers who are ages 60 to 63 can make an even larger catch-up contribution: up to $11,250.) Contributing the most that you can will add up to significantly larger savings over time. 

Let’s say you’re 50, earn $100,000 a year and start putting 10 percent of your salary into a 401(k). Assuming you receive a 3 percent raise each year and your investments earn an annual 7 percent return, you’ll have roughly $311,500 in your account by age 65. That’s a solid return, but if you double your contribution to 20 percent of your salary annually and assume the same raises and returns, you would have more than $623,000 by age 65.

3. Carrying a credit card balance

Credit card debt is the most common type of debt among adults 50 and older, according to a 2024 AARP survey. Generation X has the highest average credit card balance of any age group, to the tune of $9,600, according to 2025 data from credit reporting agency Experian.

The AARP survey found that among adults 50-plus with credit card debt, half said they feel financially insecure. Unless you tackle that debt, “it will be your biggest obstacle to living the life you want in your retirement years,” Hannon says. 

How to fix it: Paying down high-interest credit card debt should be your number one financial priority, since the interest you’d pay carrying a large balance would likely outpace the interest you’d gain on money invested in a retirement account, says Jesica Ray, a senior lead adviser at national wealth management firm Brighton Jones. The average credit card interest rate is 20.97 percent for existing accounts as of March 2026, according to WalletHub, while the average return on a retirement investment portfolio is 7 to 8 percent, Ray says. 

Say you have a credit card balance of $9,600 (the average owed by Gen Xers) with a 24 percent interest rate. If you pay about $900 a month toward that debt instead of putting it into a retirement account that has an annual return rate of 7 percent, you’d pay off the balance in about a year and save $2,343 in interest. But there’s an important exception. If your employer matches your contributions to a workplace retirement plan, such as a 401(k) or 403(b), Ray recommends funneling enough money from your paycheck to receive the full match, then, after covering necessities, putting any money you might have left in your budget toward your credit card debt.

Tip: If you’re carrying debt on more than one credit card, focus on paying off the card with the highest interest rate first. Once that’s paid off, move on to the card with the next-highest interest rate, and so forth. This strategy, called the “debt avalanche method,” will help you save the most money in interest.

4. Prioritizing others’ financial needs over your own

In your 50s, you could be sandwiched between financially supporting your adult children and your aging parents, Ray says. Juggling those responsibilities can be challenging

According to a 2024 Bankrate survey, 47 percent of Gen Xers have sacrificed paying down debt to help adult children financially, and 40 percent have sacrificed their retirement savings. Moreover, a 2025 Savings.com survey found that parents who support grown kids contribute twice as much money to their adult children each month as they put into their retirement accounts.

How to fix it: Helping loved ones at the expense of your own financial well-being can have long-term consequences. “We tend to see people make rash decisions because they are leading with their heart,” Ray says.

If you’re providing financial support to your adult children or aging parents, determine how much money you can afford to give, and make sure it’s reflected in your budget. 

Communication is key. “There’s a difference between what you want to do and what you can do,” Ray says. “You have to have that conversation with your parents and kids.” Share what fits within your budget — perhaps your kid’s cellphone bill but not their rent — and discuss ways you might be able to help without opening your wallet.

5. Ignoring your health

You may not be feeling the effects of a poor diet, lack of exercise or other bad habits yet, but in time, you probably will. “Not paying attention to your health in your 50s will come back to bite you” in retirement, Hannon says. “Health care will be your biggest out-of-pocket expense.”

Even a healthy 65-year-old who retired in 2025 will face $128,000 to $313,000 in lifetime out-of-pocket medical costs, on average, depending on their gender and what kind of Medicare coverage they choose, according to research firm Milliman.

Chronic health conditions could cause those expenses to skyrocket, especially if you need long-term care.

How to fix it: Keep up with annual wellness exams and screenings. That will help you detect any chronic conditions you might have in the early stages and develop strategies to prevent, mitigate or manage them with your doctors. Most health insurance plans cover these preventive services if you use a medical provider in your insurer’s network.

In addition, you may be able to prevent or delay chronic conditions with these strategies, recommended by the U.S. Centers for Disease Control and Prevention:

• Eat a healthy diet of fruits, vegetables, whole grains, lean protein and low-fat dairy products.
• Get at least 150 minutes of physical activity per week.
• Quit smoking.
• Limit alcohol intake. 
• Take care of your teeth. 
• Get at least seven hours of sleep a night.

Know your family history of chronic disease and share it with your doctor.

You may be able to start preparing financially for higher medical costs as you age by saving money in a health savings account (HSA). HSAs offer a tax-advantaged way to save for out-of-pocket medical expenses. To be eligible, you must have a high-deductible health insurance policy.

In retirement, you can withdraw HSA funds tax-free to pay for qualified medical expenses, including Medicare Part B, Medicare Part D and Medicare Advantage premiums, prescription drugs, dental work, hearing aids, vision care and long-term care insurance premiums.