Is your money working as hard as you?

She’s fifty and fabulous but is she financially secure? 

With half a century behind her, our fictional friend Anna has made a lot of life choices. Or more accurately, we have. We collectively made life choices on Anna’s behalf via social media polls (you can play along here). And we’ve done so in the spirit of learning how our decisions, big and small, shape our financial future. 

So, where have we landed our imaginary heroine, as she steps into her 50s? 

And how have we fared so far, in setting her up for economic success?

“Retirement might be just around the corner, or still be a long time off,” says Antonietta Sestito, Senior Vice President and Chief People and Marketing Officer at La Trobe Financial, our supporting partner in this Choose Her Own Adventure series. 

“This is a decade where you can be consolidating your financial position, and building on wealth with strategies in place towards a long and enjoyable retirement period. After all, you’ve worked hard for your money.”

Anna certainly has. And she (we) also made some savvy, wealth-increasing choices outside of her salary and wages, like investing in shares in her 30s. But along with 75 percent of Aussie households, Anna will likely have some personal debt. 

Should she focus on paying this down, or investing in her retirement?

“It’s all about balance,” says Antonietta. “Things can always change along the way, so having a single goal has its own risks. But there are some rules of thumb.”

In Antonietta’s opinion*, prioritise high-interest debt first. “Think credit cards, car loans and the like,” she says. “And for retirement investing, diversifying your investments can help manage market volatility.”

La Trobe Financial’s own 12 Month Term Account*^, provides diversification and pays returns each month. Which could help meet Antonietta’s final rule of thumb: “maintaining an emergency fund as a safety net for unexpected expenses.”

While perhaps not unexpected, during her 50s, Anna’s offspring could present expenses in the form of study and travel costs, or a leg-up into the property market. Her aging parents might also be in need of some financial support. 

In Antonietta’s view here, she should set boundaries, because “giving to your family should not mean that you have to go without”. And from outgoings to incomings, windfalls could also be on the way. 

The average inheritance Australians receive is $706,806, at age 55 – a sum that would be very welcome, should Anna be facing financial challenges. As a woman in her mid-50s, Anna joins a cohort that’s especially vulnerable to economic hardship. And at this age, the average woman’s super fund contains 45 percent less than her male peers. 

But there’s still time to catch up. “And the good news is, you don’t have to go it alone,” says Antonietta. 

“Professional financial advice, or even ASIC’s MoneySmart website are available for practical tips and strategies for building wealth. And if you’ve made the decision to boost superannuation in your 50s there’s a lot you can do, including making additional contributions and salary sacrificing.”

On the topic of salary, in her early 50s, Anna’s work income will likely be at its peak. Her estrogen levels, however, will not. 

A quarter of Australian women retire before the age of 55 and in some cases unwittingly, due to symptoms of perimenopause and menopause, which are reportedly going untreated in more than 85 percent of us. But things are shifting.

Amid growing discussion around – and demand for – hormone replacement therapies, Anna (and we) can ideally make the choice of when to call time on our career. Be it in this decade, or the next, or not at all.  

Here’s where Anna is at, as we sign off on her 50s.

With her interior design business now booming, Anna has invested in its continued growth and left her previous career. At home, she’s encouraged financial independence in her children and managed growing family responsibilities, arranging care for her father and handling her mother’s inheritance. Since her divorce, Anna has embraced new beginnings with travel, a new home and improved health cover — and is now enjoying a fresh chapter in love and life.

Join us for our Choose Her Own Adventure: Where To From Here? online event on May 28, featuring financial experts Natasha Janssens, Lacey Filipich and Dawn Thomas, and hosted by FW Deputy Managing Director Jamila Rizvi. Click here to register.