How to save for retirement in your 40s and feel more in control

Your 40s can be a busy decade. You might be balancing work, family, financial responsibilities and thinking more about the future. Retirement might still feel a while away, but these years could be a good time to build confidence in your long-term plans. 

Whether you’re getting started or already have a pension in place, there are practical steps you can take now to help shape a retirement that works for you. 

 Why your 40s can be a pivotal time 

By your 40s, many pensions become accessible from age 55, and the average target retirement age is around 64. That gives you 10 to 15 years to prepare, which is likely enough time to build on what you’ve already saved or explore new options. 

According to the Pensions and Lifetime Savings Association, a single person aiming for a moderate lifestyle in retirement might need around £31,300 per year. A comfortable lifestyle may require closer to £43,100. These figures aren’t one size fits all, but they can help you start to set a realistic benchmark. 

 Understand what you’ve got 

If you’ve had several jobs over the years, it’s worth reviewing all your existing pensions. Many people lose track of old pension pots, and it could make a big difference to have a clearer picture of your total savings. Campaigns like the National Pension Tracing Day offer some useful tips and a checklist to help people trace and consolidate their lost pensions.  

Free tools like the MoneyHelper pension calculator can help you work out where you stand and model different scenarios. This could help you feel more confident about whether your current contributions are still right for your goals. 

Build on your habits 

You may already be saving into a workplace pension and your 40s can be a great opportunity to review it. Has your income, living costs or goals changed? Are your investments still aligned with your future plans? Answering these questions now and adjusting your contributions could be pivotal in shaping the retirement you want. 

Some people use this time to increase their pension contributions, consolidate older pots, or explore wider financial planning, from ISAs to savings goals, budgeting, or debt repayment. It’s not about doing everything immediately but more about checking in on whether your current approach still fits and going from there. 

You don’t have to figure everything out now 

Planning for retirement doesn’t mean having all the answers. But setting aside a bit of time now could help you feel more in control and may reduce stress later. 

 Ready to take the next step?

Saving for retirement in your 40s doesn’t mean starting over. It’s about building on what you’ve already got and taking a fresh look at whether your plans still fit your life now and what you want in the future. 

Our free guide, ‘5 top tips for retirement planning in your 40s’, is designed to help you do just that. It offers simple, practical suggestions you can put into action straight away, even if you’re short on time. 

And if you’d like to explore your personal options in more detail, speaking with a  a Financial Adviser could help bring clarity to your plans and confidence in your next steps. 

Get in touch
If you would like to discuss Saving for retirement in your 40s, or if you wish to schedule an initial consultation, please contact us.advise-me@fosterdenovo.com

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investment can go down as well as up and you may not get back the full amount invested. Investments do not include the same security of capital which is afforded with a deposit account. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances. A pension is a long-term investment not normally accessible until 55 (57 from April 2028). Accessing pension benefits early may impact on levels of retirement income and your entitlement to means tested benefits. You should seek advice to understand your options at retirement. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Pension savings are at risk of being eroded by inflation.

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