Staying On Track for Retirement in Your 40s

Published July 27, 2017
Staying on track with your retirement goals is important. Here’s what you can do to make sure that you do so during your 40s.
  • It’s important to keep saving and maintaining a diverse portfolio
  • Be sure that both you and your spouse are planning for retirement
  • The Personal Pension can be a low commitment way to start building retirement income.

You’ve already determined what your retirement goals are and what a roadmap of how to get there looks like. But how can you make sure you’re on track? Below, we’ve created a quick checklist of what to do during your 40s to check your progress.

  1. Keep on saving. Earnings tend to rise between age 35 and 45, but, for many people, expenses start to rise around this time, too, as families grow. Saving early and often is key to a comfortable retirement.
  2. Enroll in the Personal Pension. Unlike an annuity, the Personal Pension allows you to contribute incrementally, in smaller amounts, and starting at a younger age, the way you’d put aside money in your savings account or 401(k). You can use our Diagnostic Tool to determine your income needs in retirement based on some basic information.  
  3. Remember to keep your investment portfolio diverse. Don’t shy away from stocks just because they hold more risk than bonds. They also hold higher long-term gains, and the short-term losses are often recoverable.
  4. Avoid high fees or complex products. As you start to plan for retirement you’ll find a variety of products at your disposal. Chances are, anything that has steep fees or leaves you scratching your head isn’t worth your time or money.
  5. Eliminate credit card debt. Credit card debt is like a financial black hole, with extremely high interest charges eating away at money that could, and should, be going towards a retirement account, an emergency fund, your mortgage, or at least something more enjoyable than credit card debt.
  6. Make sure your spouse is planning for retirement, too. If your spouse has not begun planning for retirement, open an IRA in his/her name. This rings true even for a stay-at-home spouse, thanks to the benefits of Roth IRAs for lower-income individuals.
Nimish Shukla

Nimish Shukla

Financial Planning Professional

Nimish has spoken with thousands of customers about retirement spending. As a CFA Charterholder and licensed fixed annuity producer he values the importance of building an income stream for retirement. In addition to his work at Blueprint Income he is also a regular contributor to Nerdwallet.