Pensions in your 40s

In your 40s you are likely to reach the peak of your earning power. Retirement might still seem a long way off, but the earlier you start to save, the longer your money will have to grow. It's now time to start thinking seriously about how you're going to meet your retirement goals.

Are you on track to retire?

If you haven’t started saving into a pension, or making any provision for retirement, now is the time to start.

Read our guide to types of pensions to weigh up your options

If you’re already saving into a pension, check in on your pension pot to see whether, based on your current contributions, you’re saving enough to meet your goals.

Use our pension calculator to help you work out a rough estimate of how much you need to put away each month to meet your goals.

If it looks like your pension pot will fall short, there are some actions you can take:

  • Increase your pension contributions
  • Start saving elsewhere, for example in an ISA
  • Revise your career and retirement goals

The pension calculator provides an approximate projection of how soon you could retire, but for a better picture it's necessary to take account of other details. We would always suggest taking financial advice.

Get advice on your pension plan

Enter your postcode below to find a financial adviser in your area.

How much risk is sensible?

Higher-risk investments offer potentially higher returns, and at this stage you can probably still afford to be fairly bold – as long as you're comfortable with the potential downside. As you get closer to retirement, you should consider moving some of your capital to lower-risk investments.

Next steps

  • Estimate your future retirement income with our pension calculator
  • Use Moneyhub to plan for your retirement goals
  • Consider taking financial advice if you're unsure about your pension options, or to check you're on course and that your retirement goals are realistic

Last updated: 07 July 2016