Smart Money Moves to Make in Your 40s

Your 40s are a pivotal time in your financial life. For many, this decade marks the height of career progression, income growth, and increasing responsibilities—both personally and financially. Whether you’re raising a family, advancing in your career, or simply trying to make up for lost financial ground, your 40s are when your long-term financial future starts to come into sharper focus. So, let’s zero in on three essential financial strategies to help you build security and wealth.

1. Supercharge Your Retirement Savings

By your early 40s, a good goal is to save two to three times your annual salary for retirement. If you’re already there—great! Keep going. But if you’re not quite on track, this is the decade to ramp up your savings efforts.

Start maximizing contributions to your workplace retirement plan, like a 401(k). In 2025, the limit for employee contributions is $23,000 for those under 50, and $30,500 if you’re 50 or older. If you’re not able to max out, try increasing your contribution rate by 1% each year—it adds up over time.

If you’re already hitting the limits on your 401(k), look into other smart savings vehicles. A Health Savings Account (HSA) can be a powerful, tax-advantaged way to save for future medical costs and even retirement expenses. HSAs offer triple tax benefits: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free.

Another option? A brokerage account. While it doesn’t offer tax-deferred growth, it gives you flexibility and access to your money without the early withdrawal penalties that come with retirement accounts.

Town & Country offers Individual Retirement Accounts (IRAs), Certificates and other long-term savings tools that can help you save for the future. Your 40s are the decade to push harder toward building the nest egg you’ll rely on in later years.

2. Make Sure You’re Earning What You’re Worth

Many people in their 40s are juggling major life expenses—kids, housing, college savings, aging parents—and wonder if their income is keeping pace with their growing responsibilities.

If it’s not keep pace, take action. That could mean returning to school—either to finish a degree, earn a professional credential, or shift into a more lucrative or personally fulfilling role. Some employers will contribute to continuing education costs, and if not, Town & Country offers personal loans with flexible terms to help you actualize your potential.

Another option? Switch jobs or employers. In today’s competitive labor market, workers often see their biggest salary increases when they move to a new company. If that’s not an option, you might consider negotiating a raise at your current job—come prepared with market data, performance metrics, and a strong case for your value.

3. Protect What You’re Building

Your 40s are often the peak of your wealth-building years—which makes protecting that wealth more important than ever.

Start with life insurance. If you have dependents—children, a spouse, or aging parents who rely on you—it’s crucial to have enough coverage to replace your income and cover future needs in the event something happens to you. Term life insurance is usually affordable and sufficient for most families.

Equally important is disability insurance. Your ability to earn income is one of your biggest assets, and this protects you if illness or injury prevents you from working. Many employers offer group coverage, but it’s worth evaluating if that’s enough—or if you need a supplemental policy.

As you approach your late 40s, it’s also time to consider long-term care insurance. While this might feel premature, purchasing a policy in your late 40s or early 50s can be far more affordable than waiting until your 60s. Long-term care insurance helps cover the costs of assisted living, home health care, or nursing home care—expenses that could otherwise wipe out your retirement savings.

Final Thoughts

Your 40s are all about momentum—earning more, saving more, and safeguarding the financial foundation you’ve worked so hard to build. Whether you’re playing catch-up or cruising along your financial plan, this decade is your opportunity to set the tone for a more secure and empowered future.

Town & Country is here to help get on track or get ahead. Reach out to a credit union representative by emailing us at info@tcfcu.com, calling 800-649-3495 or book a consultation here.