Retirement Planning in Your 40s

Your 40s are often your highest-earning decade. This is the time to max accounts, get intentional about goals, and check whether you're on track.

Run a real retirement check

A common rule of thumb: aim to have roughly 3x your salary saved by 40 and about 6x by 50. If you're behind, your 40s are the time to close the gap.

Estimate the number you'll actually need, then work backward into a monthly savings target.

Maximize while you can

• Push toward maxing your 401(k) and an IRA. High earners can also look at a backdoor Roth and an HSA as a stealth retirement account.
• Avoid lifestyle inflation — the gap between what you earn and what you spend is what funds retirement.

College vs. retirement

It's natural to want to fully fund your kids' education, but secure your own retirement first. Scholarships, aid, and loans exist for college; nothing bails out an underfunded retirement.

Educational information only — not financial, tax, or legal advice. Consider speaking with a qualified professional about your situation.

← Back to all articles