There’s a saying that “life begins at 40” – but should retirement planning wait until then?

If you’re in this in-between decade, you might hear some people say that it’s too early to worry much about your retirement. Others might try to argue that in fact it’s too late to put a useful plan in place.

The good news is that neither of those things are true.

If you’re 40, you have a great opportunity ahead of you to put a strategy in place to help deliver a great retirement.

What’s the opportunity?

When you’re 40, assuming you plan to retire at 65, you still have 25 years of working life ahead of you.

Stats NZ data also shows us that a growing number of people are working much later in life than 65, too.

That means you potentially still have a long time to save and invest to reach your goals. You may be able to take higher investment risks, because you have time to ride out market volatility, and your returns have longer to compound.

On the other side of the equation, you may also be earning significantly more than you were in the earlier decades of your working life, giving you more disposable income to work with.

Small changes can make an impact.

Because you could still be investing for many years, small tweaks you make to your settings now could make a big impact over time.

With changes to Government contributions and default rates announced in Budget 2025, it’s a good time to check your KiwiSaver settings.

For example, increasing your contribution rate could make a meaningful difference by retirement. Sorted’s KiwiSaver calculator indicates a 40-year-old earning $100,000 with a KiwiSaver balance of $70,000, contributing 3 percent, matched by an employer’s 3 percent, could have around $340,000 saved at 65 if they were invested in a balanced fund. If they were invested in an ‘aggressive’ fund, they could end up with just over $470,000 saved, even with other settings the same. If they increased their contribution rate up to 6 percent, they could accumulate up to $560,000 by age 65, according to Sorted. (Calculations are based on projected returns, not guaranteed returns).

Wondering if your current fund type still suits your goals? It’s important to seek personalised advice before making any changes to your investment risk level. A SHARE adviser can guide you through an updated risk profile and help ensure any changes are part of a well-informed strategy.

Your KiwiSaver should be part of your wider financial life.

We can work with you to make sure that your settings align with your plans, and that your KiwiSaver fits in comfortably with your other investments.

We can also talk to you about your vision for a comfortable retirement, and whether you are on track to achieve that.

No need for a full reset!

There may not be a need for a major overhaul of your investments, or your KiwiSaver strategy.

However, this is a great time to make informed and intentional adjustments to your investments so that you can build up real momentum as you head into the next stages of your life.

Ready to talk?

We’re here to help with any investment or KiwiSaver questions you might have. Whether you’re just starting out, or you want to finesse your portfolio, our expert team can answer your questions.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.