If you are in your 40s and planning to retire in 20 to 30 years then it’s not too late to start saving. Here are our tips for planning retirement in your 40s…
Planning retirement in your 40s
Even if you haven’t saved a penny for retirement there is still time. We would advise that you start saving now and be consistent with your investment contribution. Planning retirement in your 40s is possible, it is never too late to start saving, the key is to start.
Retirement planning in your 40s – what to do…
Firstly, if your employer offers a workplace pension, then you should consider contributing whatever is required to get the maximum employer contribution. This will help to maximise your retirement savings pot in the long-term.
As well as starting to save for retirement, we would also advise you to set up an ’emergency savings fund’ which would be for any unforeseen events such as car/home repairs, job loss, or to support a family member. Emergency cash funds provide financial flexibility to address these events without interrupting your regular retirement savings contribution.
Most people in their 40s will not have paid their mortgages off but if you have any other forms of debt then you should make an effort to get this repaid. Examples include credit card debts, car loans and student loans.
As you’re likely to have already had a number of jobs you could easily end up with a dozen or more pensions by the time you retire. Tracking multiple pensions through multiple providers is tricky and time consuming, so why not bring them together. We can do this for you and save you the time and hassle.
Once you have started to do the above, you can then start to get an idea of when you could afford to retire in the future and be able to work towards that date.
Please remember that you are not alone when it comes to making decisions about your financial wellbeing. At Resolve Financial Solutions, we love taking the time to listen to our clients’ retirement plans and helping to make them a reality. We focus on cash flow modelling to give you a clear picture of the retirement lifestyle you can expect. Get in touch today to discuss how we can assist your future plans.
*Please note: A pension is a long-term investment not normally accessible until 55 (57 from 2028). The value of your investment (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available.