How to boost your retirement savings in your 40s

Age isn’t always just a number. On a financial side of things, your 40s may be a time of consolidation, when you can confirm or adjust your decisions, and verify your plans for the future. It can also be a good opportunity to give your pension pot a chance to grow.

Here are some steps you can take to fast-track your savings and make retirement planning a priority.

Make your mortgage work for you

Like to take control of your finances? If you have a mortgage on your family home, now may be the right time to be proactive and give this long-term commitment a health check.

A few things might have changed in your life since you first signed on the dotted line: is your home loan still aligned with your needs? Even small changes can make a big difference over the life of a mortgage – not to mention your financial life as a whole.

If you’d like to explore your options, a mortgage adviser will help you find the best ways to structure your home loan.

Get rid of high-interest debt

Taking on debt is not necessarily a bad thing, unless it’s getting in the way of your savings goals. And if it’s allowed to grow, high-interest debt can quickly accumulate, preventing you from funding other important long-term needs – like retirement.

It’s a good idea to create a budget and funnel as much money as you can into repayments. Once your debt has become a thing of the past, you’ll be in a better position to secure your future.

Investing today for tomorrow

Your ‘time horizon’ is one of the most important components of any investment plans, including KiwiSaver. The longer your investment horizon, the more time you have to ride out the ups and downs and increase your retirement cushion.

At 40-something, time is still on your side. You may even consider investing in higher-risk funds (growth or aggressive) if they’re aligned with your personal attitude to risk.

Not sure about your risk profile? Please feel free to contact us: we’ll be happy to help you identify it and find the right balance in your investment portfolio.

How fit and healthy are your savings?

How much have you saved so far? Are you on track or off track for your desired retirement? Once again, your 40s are an ideal time to assess your progress and take action.

If you’ve already built a little nest egg, you may look at putting it into a high-interest account, so that it works to its full earning potential. And if you’re falling behind, it’s not too late to catch up. What you need is to take a look at the numbers and set up a realistic savings strategy. Need help? Talking with a financial adviser can give you a fresh pair of eyes you need to put your financial life into perspective.


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