Having no savings at 40 isn’t the end of the world, but it’s not ideal. Saving enough to ensure a comfortable retirement is a long-term job, so it makes sense to start early in life.
There are good reasons why someone may have no savings at this age. Incomes have stagnated. The financial crisis and pandemic have added to the squeeze. Young people have other responsibilities, such as paying off debt or saving for a property deposit.
Also, retirement can seem a long way off, in your 20s and early 30s. For many, the urgency starts hitting home around 40. At which point, it should be all systems go.
I’d buy FTSE 100 stocks
Most people are likely to have some savings at 40, though. Especially in future, as the auto-enrolment company pension scheme gives millions a workplace pension for the first time.
I’m in my early 50s now, but … Read more