This is probably your power saving decade where you can really start to save some large sums of money.
By now, you should have developed good savings habits, you should understand how your investments work and how they are performing.
By now you should know what your retirement ‘number’ is and how you are going to get there. Make sure this documented and you check your progress on an annual basis.
You will probably have some very serious responsibilities by now - home owner, partner (or maybe an ex-partner or 2), children, pets, etc. Make sure you have a sufficient Plan B pot for emergencies.
Have you got a good savings plan for your children? It’s possible to build them a £1m legacy if you start putting away a small amount for them on an annual basis over a long period of time. Not only will it help them as they grow older but also means you won’t have to dip into your retirement pot as much when they need help from the Bank of Mom and Dad.
Think carefully before re-mortgaging your house to do extensive work to add that extension - it might mean your revised mortgage repayments now go beyond your dream retirement age.
Top tip for your 40s:
Get a will sorted out if you haven’t already.
Make sure you are strictly saving whatever is required to hit your retirement goal, as there is still time to tap into the power of compounding, and have an investment portfolio with a relatively higher risk.