Investing in Your 50s After Life’s Curveballs

If you’ve spent years putting family first, navigating part‑time work, or rebuilding after a big life change, you’re not alone. Many people reach their early 50s ready to refocus on their own financial future but unsure where to start.

Take, for example, a teacher in their 50s with one teenager still at home. After a divorce and years of working part‑time, their KiwiSaver balance sits around $35,000. They’ve recently moved into full‑time work, have $80,000 in savings set aside, and are on track to be mortgage‑free by 60.

They’re ready to invest $20,000/$80,000 but would like to keep the rest in cash for now, partly to stay flexible for a future investment property, and partly because taking on too much risk doesn’t feel right.

This is just one possible scenario, not a recommendation. But it highlights some of the questions many people in their 50s may ask:

• What type of funds should I invest in?

• How much should I invest from my savings?

• How much should I keep in cash?

• And where does an investment property fit in, if at all?

Below are some general considerations that may help guide your thinking.

Important: This article is for general information only and is not personalised financial advice. It doesn’t take into account your individual objectives, financial situation, or needs. You should consider talking to a licensed financial adviser before making investment decisions.

Being in your 50s, you still have up to 15 or more years until retirement – that’s a meaningful investment timeframe. While markets can move up and down in the short term, 15 years historically has given growth assets like shares time to smooth out some of that volatility and potentially deliver higher returns.

Since this time frame is long it’s important to consider, higher‑growth or aggressive funds. It also helps to remember that many people today are living well into their late 80s, so retirement itself can last 20 years or more. You’re also Find to cash out all your investments the day you turn 65.

Continuing to hold some shares beyond that age can help your money keep working over the long term. So if you’re in your 50s and feeling very cautious about the sharemarket because you’re focused on retiring at 65, this longer timeframe is an important factor to keep in mind.

Holding a significant amount in cash can provide flexibility and peace of mind – especially if you value having funds available for opportunities or unexpected expenses. But it’s still worth considering how and where that cash is held.

If, for example, you’re adamant that you want to keep around $60,000 in cash and that’s non‑negotiable for you, you might still think about:

• How to split your savings: whether some of it could sit in a high yield savings account, term deposit or cash fund with a return closer or above inflation, to help reduce the impact of rising prices on your savings.

• How quickly and easily you need to access the money, and whether different options (such as cash funds or term deposits) might balance access with a potentially higher yield.

This guide may be useful if you’re looking to make the most of your cash holdings:

Why cash funds can be great alternatives to term deposits or savings accounts.

Equally it’s important to consider a balance between having an emergency fund that suits your lifestyle, and also the opportunity cost of savings.

For many Kiwis, buying an investment property has long been seen as the gold standard of building wealth. Bricks and mortar feel tangible, familiar, and for a long time it felt like property prices “always went up”.

Today’s environment looks different though, and it’s worth pausing to ask whether property still fits your financial goals.

• Long‑term capital growth: Over time, property values have historically risen in many parts of New Zealand, especially in larger centres.

• Rental income: A steady rent stream can help cover mortgage repayments or provide supplementary income in retirement.

• Leverage: You can borrow to buy property, meaning your returns are based on the full property value, not just your deposit.

• A sense of control: Many people find comfort in owning a physical asset they can see and maintain themselves.

• High upfront and ongoing costs: Deposits, legal fees, rates, insurance, maintenance, and potential property management fees can add up quickly.

• Concentration risk: A single property ties a large portion of your wealth to one asset and one market e.g, just one suburb.

• Liquidity: Unlike shares or managed funds, selling property takes much longer. You can’t easily access small portions of your capital if you need cash.

• Changing rules: Tax treatment, lending restrictions, and tenancy laws have all evolved in recent years, which can affect potential You might already know.

• Market cycles: Property values can go down as well as up. Shorter hold periods can be risky if you’re forced to sell in a downturn.

It’s important to stress that there’s nothing wrong with wanting an investment property as it can be a lucrative and a good fit for many people.

But it’s also worth comparing it with other ways to grow your wealth, such as diversified index funds, which offer liquidity, lower entry costs, and broad market exposure.

For many, the question isn’t “property or funds?” but “what mix of different assets makes sense for my goals, timeframe, and comfort with risk?”.

Equally if you’re on track to be mortgage free by 60, would adding an investment property really be worth the time and the effort?

Many KiwiSaver and investment platforms offer risk profilers or fund selector tools to help you explore options aligned with your timeframe and comfort level. These can be a helpful starting point to:

• Clarify your attitude to risk and market ups and downs.

• Match your investment mix to your time horizon (for example, 10+ years vs. 2–3 years).

• Prepare for a conversation with a financial adviser if you choose to seek personalised advice.

Sorted’s range of tools is a great place to start.

In your 50s, the focus is often about balance between growth and security. Some practical next steps you might consider are:

• Checking your investment time horizon and see which funds can suit your goals.

• Reviewing where your cash is kept and whether it’s working hard enough while staying accessible.

• If you’re investing in property, consider implications such as time, debt and the trade offs compared to investing in other assets, such as shares.

• Using online tools and, if needed, speaking with a qualified financial adviser for guidance tailored to your situation.

Being thoughtful and intentional, as you clearly are if you’re thinking about these questions, is already a big part of the journey.