I’m 40 With No Retirement Savings. What’s My Next Move?

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You’re not necessarily expected to be focused on retirement at age 40. At that point, you may be grappling with mortgage payments, summer camp bills for your kids, and a host of other near-term expenses.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. The typical 40-year-old has $45,000 in retirement savings, according to the Federal Reserve. So if your retirement plan balance is $0, it means you’ve probably got some catching up to do.That’s the bad news. The good news, though, is that if you’re only 40, you have plenty of opportunity to make up for lost time. But the key is to get on the right track now to take advantage.Drum up the moneyChances are, if you’re 40 with no retirement savings, it’s because you’ve been unable to comfortably afford individual retirement account (IRA) contributions. So at this point, you have a choice: You can cut back on spending, or you can try to boost your income with a side hustle to come up with the money.There’s no right or wrong choice between these two. But the money for your retirement account has to come from somewhere. And you may find that working a second gig is easier than finding ways to cut costs, especially if you’re already on a tight budget.Thankfully, the gig economy is loaded with options. And you may be able to find a way to earn money you actually enjoy, whether it’s caring for pets, selling baked goods, or getting paid to write product reviews.Open an IRA and investIf you’re 40 years old and plan to retire in your 60s, you have a good amount of time to take advantage of compounded returns in a stock portfolio. Over the past 50 years, the S&P 500’s average annual return has been 10%, accounting for strong years as well as weak ones. If you load up an IRA with stocks, you might enjoy that same return since you’re investing over a long period of time.Say you’re able to drum up $200 a month for your IRA starting now, and you’re looking to retire at 65. If you’re able to score a 10% yearly return on your money, that leaves you with about $236,000 by the time retirement rolls around.If you don’t have a retirement account available through your job, you can open an IRA at any financial institution that offers one. Click here for a list of the best IRAs to find a good home for your retirement savings.From there, it’s a good idea to arrange for your IRA contributions to happen automatically. Once you have extra money coming in from your side hustle (or from cutting expenses), set up an automatic transfer so that money goes directly into your IRA once a month, or at an interval that works for you.You might think your retirement is doomed if you’re 40 and haven’t started saving yet. And the reality is that if you continue on that path, you could easily find yourself cash-strapped later in life. But if you make some changes and start investing in an IRA immediately, you can course-correct and set yourself up for the comfortable retirement you deserve.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

You’re not necessarily expected to be focused on retirement at age 40. At that point, you may be grappling with mortgage payments, summer camp bills for your kids, and a host of other near-term expenses.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

The typical 40-year-old has $45,000 in retirement savings, according to the Federal Reserve. So if your retirement plan balance is $0, it means you’ve probably got some catching up to do.

That’s the bad news. The good news, though, is that if you’re only 40, you have plenty of opportunity to make up for lost time. But the key is to get on the right track now to take advantage.

Drum up the money

Chances are, if you’re 40 with no retirement savings, it’s because you’ve been unable to comfortably afford individual retirement account (IRA) contributions. So at this point, you have a choice: You can cut back on spending, or you can try to boost your income with a side hustle to come up with the money.

There’s no right or wrong choice between these two. But the money for your retirement account has to come from somewhere. And you may find that working a second gig is easier than finding ways to cut costs, especially if you’re already on a tight budget.

Thankfully, the gig economy is loaded with options. And you may be able to find a way to earn money you actually enjoy, whether it’s caring for pets, selling baked goods, or getting paid to write product reviews.

Open an IRA and invest

If you’re 40 years old and plan to retire in your 60s, you have a good amount of time to take advantage of compounded returns in a stock portfolio. Over the past 50 years, the S&P 500’s average annual return has been 10%, accounting for strong years as well as weak ones. If you load up an IRA with stocks, you might enjoy that same return since you’re investing over a long period of time.

Say you’re able to drum up $200 a month for your IRA starting now, and you’re looking to retire at 65. If you’re able to score a 10% yearly return on your money, that leaves you with about $236,000 by the time retirement rolls around.

If you don’t have a retirement account available through your job, you can open an IRA at any financial institution that offers one. Click here for a list of the best IRAs to find a good home for your retirement savings.

From there, it’s a good idea to arrange for your IRA contributions to happen automatically. Once you have extra money coming in from your side hustle (or from cutting expenses), set up an automatic transfer so that money goes directly into your IRA once a month, or at an interval that works for you.

You might think your retirement is doomed if you’re 40 and haven’t started saving yet. And the reality is that if you continue on that path, you could easily find yourself cash-strapped later in life. But if you make some changes and start investing in an IRA immediately, you can course-correct and set yourself up for the comfortable retirement you deserve.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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