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If you’re in your 40s and feeling behind on retirement, you’re not alone. A lot of people hit this stage of life with less than $150,000 saved and a rising sense of panic.
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But here’s the good news: You’ve still got time. What matters now is how you use it.
With two decades or more until retirement, small moves can still have a big impact. The key is getting smart about where your money goes from here and avoiding a few common traps that quietly eat into your future.
First: understand where you stand
Let’s talk numbers. Fidelity recommends having 3x your salary saved by age 40. So if you earn $75,000, you’d be aiming for $225,000. If you’re sitting under $150,000 right now, you’re not way off, but it’s a sign to start dialing things in.
Not sure how close you actually are and looking for some help? The advisors on our partner SmartAsset’s platform have been rigorously vetted through their proprietary due diligence process.
Make your money work harder — starting now
Too many people keep large cash balances in accounts that barely earn interest. Big banks still offer 0.01% APY for traditional savings accounts in most cases, even while online banks are paying 4.00% or more.
That gap adds up fast. If you’re holding cash for emergencies or near-term goals, don’t let it sit idle. Check out our list to compare the best high-yield savings accounts here and start earning more interest today.
Invest like time is on your side (because it still is)
At 40 or 45, you likely still have 20 to 25 years before retiring. That’s enough time for compound growth to do serious work — but only if your money is actually invested.
If you haven’t opened a brokerage account yet, now’s the time. You don’t need to be a stock picker. A low-cost index fund and regular contributions can get you most of the way there.
Online brokers are easy to use and generally don’t charge any fees. The S&P 500 has returned 10% annually over its history. Open a brokerage now and start really saving for your retirement.
Don’t let fear keep you stuck
Feeling behind can lead to inaction or risky decisions. But the most important move you can make in your 40s is to start where you are.
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Automate your savings.
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Keep cash in a high-yield account.
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Get your investments working.
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Use tools that help you plan and adjust.
Even small changes now can close a big gap later.
You’re not too late — but this is your window
The truth is, your 40s are a critical time for your money. You’ve still got runway, but not as much as you used to. That means every decision counts more, and taking action now can save you from scrambling later.
You’ve got this. Just don’t wait.
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