Many Australians fear they have left investing for their retirement too late, particularly after major life events or periods out of the workforce, but finance experts say there is no fixed cut-off for building wealth.
While starting early can make a difference, they said consistent contributions later in life, even over a shorter timeframe, can still deliver meaningful results.
Personal Turning Point
For Jody Bell, that shift in thinking came in her early 50s, following her divorce.
“I think for me, in my early 50s, after my second divorce, I kind of woke up a bit and thought, what is it that I want to focus on now as a single woman?” she told 7NEWS.
The mother of two began educating herself about investing, while also looking for practical ways to redirect and generate money outside her regular budget.
“There’s micro investing apps, so you don’t need a lot of money to start,” she said.
She supplemented that by finding additional income streams, including small online tasks.
“I did things like, you know, market research online,” she said.
“I think the other, the really easy thing that not a lot of people know about is a platform called ShopBack.”
Expert Advice
Financial adviser Mel Browne said the belief that people are “too late” to invest is one of the most persistent misconceptions she encounters, particularly among Australians in midlife.
“If I can find more money, I can invest for 30 years from my 40s,” she said.
“I can keep investing in my 50s and in fact I should be leaning in then, not leaning out going, ‘oh well, too bad’.”
She said even relatively modest, regular contributions, when combined with reinvested returns and the effects of compound growth, can accumulate over time.
As an example, Browne said investing $250 a month from age 50, with returns reinvested, could grow to about $500,000 by age 80.
“You have more options than you think,” she said.
Practical Steps for Late Starters
- Use micro-investing apps to start with small amounts.
- Look for additional income streams, such as online market research or cashback platforms.
- Focus on consistent contributions rather than a lump sum.
- Reinvest returns to benefit from compound growth.
For Bell, the process involved acknowledging past financial decisions while focusing on what could still be achieved.
“Looking at yourself accepting that you know I’ve made some small and large financial errors. But it’s never too late,” she said.
All information in this article is general in nature and does not take into account your personal circumstances. You should always seek independent, professional financial advice from a licensed expert before making any financial decisions.
