How much should I have in my pension at 40?

On track at 40: the numbers

This is the pot you'd need at 40 to reach each standard at 67 with no more saving, counting the full State Pension (£241.30 a week).

Pot needed at 67 uses the 4% rule of thumb for the income above the State Pension. "On track" assumes 6% growth after fees and 2.5% inflation over 27 years. See How much pension do I need? for how these are worked out.

What do people actually have at 40?

Far less than £203,000. People aged 35 to 44 who have a pension hold around £39,500 on average, according to MoneyWeek's reading of the latest ONS figures (2020 to 2022), and that leaves out everyone with no pension at all.

If your number is small or zero, you're in a very big crowd. The useful question isn't "am I behind?" It's "what can I do in the next 27 years?" The answer is: a great deal. Money saved at 40 has nearly three times as long to grow as money saved at 57.

What your pot could become by 67

If you stopped saving today, here's what different pots at 40 could grow to, and what they could add to your weekly income, in today's money (6% growth after fees).

Then add what you save from now on. For a moderate retirement from 40 with nothing saved, you'd need to pay in around £177 a week yourself, which becomes about £221 with basic-rate tax relief. With £40,000 already saved, that falls to about £142 a week from you. Money your employer pays in counts towards this too.

Why 40 is the turning point

At 40 the cost of waiting starts to climb fast. Here's what it takes to reach a moderate retirement at 67 starting from nothing, and what each £10 a week is worth, depending on when you start.

Pot of about £504,000 at 67 in today's money, 6% growth after fees, 2.5% inflation, basic-rate tax relief. Employer contributions reduce what you pay yourself.

Waiting five years, from 40 to 45, raises the weekly cost by about a third. Waiting ten years nearly doubles it. You don't need to find £177 a week tomorrow. Starting with something now, then raising it, beats a perfect plan that starts at 45.

Saving at 40 when money is tight

Forty is often the most stretched decade: mortgage, children, childcare, maybe parents who need help. Pension saving is usually the first thing cut. These are ways to keep it going without feeling every pound.

1. Never opt out of your workplace pension

Opting out to free up cash means losing your employer's contribution as well as your own. At the minimum 8%, your employer pays 3% of qualifying earnings that you only get if you stay in.

2. Raise it 1% with every pay rise

Ask your employer or provider to raise your contribution each time your pay goes up. You never see the money in your take-home pay, so you don't miss it, and over a few years it can take you from the minimum to where you need to be.

3. Ask about salary sacrifice

If your employer offers it, you give up part of your salary and it goes straight into your pension. You save income tax and National Insurance, and some employers add their own NI saving to your pot. From April 2029 the NI saving is due to be capped at £2,000 a year of sacrifice; income tax relief is unchanged.

4. Higher-rate taxpayer? Claim the extra relief

Many people cross into higher-rate tax (earnings over £50,270) in their 40s. If you pay into a personal pension, the provider adds only basic-rate relief. You claim the extra 20% through a Self Assessment return or by contacting HMRC. It's money many people never claim.

5. Check where your pension is invested

With 27 years to go, most people's pensions sit in a default fund chosen by the scheme. Log in once, see what it's invested in and what it charges. You don't have to change anything, but know what you own.

6. Turning 40 soon? Look at a Lifetime ISA first

You can only open a Lifetime ISA before your 40th birthday. It adds a 25% government bonus (up to £1,000 a year), but there's a 25% charge if you take money out before 60 for anything other than a first home. The government is consulting on replacing it for new savers from April 2027, so check the current rules before you open one.

7. Get the basics in place

Check your State Pension forecast at gov.uk/check-state-pension and use the free Pension Tracing Service to find old workplace pensions. Doing this at 40 gives you 27 years to fix any gaps, including filling missing National Insurance years.

Quick questions

Is £50,000 in my pension at 40 good?

Yes, it's above the average for your age group. By 67 it could grow to around £124,000 in today's money (6% growth), adding about £95 a week to the State Pension before any more saving.

I'm 40 with no pension. What should I do first?

Join your workplace pension if you have one, check your State Pension forecast, look for old pensions, then start regular saving, even £20 or £25 a week, and raise it with each pay rise. See our guide: How much pension do I need?

Should I overpay my mortgage or pay into my pension at 40?

It depends on your situation, and many people do some of both. Pension money gets tax relief and often an employer top-up straight away, but you can't touch it until 57 (the minimum pension age rises from 55 to 57 in April 2028). Overpaying a mortgage gives a guaranteed saving at your mortgage rate and keeps the money in your home. Check for overpayment limits or charges, and consider free guidance from MoneyHelper.

How much should I be paying in at 40?

A common rule of thumb is to take the age you start, halve it, and save that percentage of your salary, so about 20% at 40, including employer contributions and tax relief. That's a guide, not a rule. See How much should I put into my pension?