Retirement planning at 40: the realistic roadmap

Between 40 and 50, most people determine what their retirement will look like. The good news: an investment horizon of 20 to 25 years is still long enough for compound interest to work. The honest news: from now on, postponing costs noticeable standard of living.

Step 1: Calculate your pension gap honestly

Take your pension statement and calculate: state pension minus taxes and health insurance, compared with 80% of your current net income. The difference – four figures a month for most – is your task. Only when this number is on the table does provision become concrete.

Step 2: The order of levers

• Insure occupational disability – without income there is no provision
• Review expensive legacy contracts before new money flows
• Automate your savings rate: 15–20% of net income as a guideline
• Use tax incentives (company pension, Rürup) deliberately, not reflexively
• Invest globally diversified – savings accounts don't beat inflation

Step 3: Put the plan in writing

A retirement plan that exists only in your head won't survive the next car purchase. Write down: target pension, monthly rate, portfolio structure, annual review date. Exactly this document is what we create in the initial consultation – free of charge and yours to keep.