Is it too late to start saving at 40?

No. While starting earlier gives compounding more time to work, starting at 40 still gives you 25+ years until a typical retirement age. The key is to save aggressively - around 15-20% of your income - and take advantage of pension tax relief. Many people make significant progress even with a late start.

How much should I have in my pension at 40?

A rough guide is to have around one year's salary in your pension by age 40. So if you earn £50,000, aim for around £50,000 in your pension. This is a starting point - your target may be higher or lower depending on your retirement income goals.

What if I am behind on my savings?

First, do not panic. Many people are behind - the UK average savings rates are low. Second, calculate how much you need to save to catch up. This might mean increasing pension contributions, reducing expenses, or finding additional income sources. Small increases in your savings rate now can make a big difference over time.

Should I prioritise pensions or ISA savings?

For most people, pensions are more tax-efficient due to employer contributions and tax relief. However, ISAs offer more flexibility - you can access the money before retirement without penalties. A common approach is to prioritise pension contributions up to your employer match, then split extra savings between pension and ISA.

How Much Should You Have Saved by 40?

UK benchmarks and what to do if you are behind

Syd Lawrence

9 June 2026

UK Savings Benchmarks at 40

These are rough benchmarks based on UK data. Your target depends on your income, lifestyle, and retirement goals.

1x Salary

Pension target by age 40

If you earn £50k, aim for £50k in pension

3x Salary

Total net worth target

Including property equity and investments

6 months

Emergency fund target

In accessible savings

Why Averages Can Mislead

The UK median savings are low. Half of working-age adults have less than £10,000 in total savings and investments. But 'average' does not mean 'acceptable' or 'enough'.

If you earn above average, your target should be above average. If you want to retire comfortably, you need more than the average person who may retire with insufficient savings.

Savings Rate Benchmarks

Instead of focusing on a single number, track your savings rate. Here are UK benchmarks:

Savings Rate	Assessment	Notes
20%+	On track for early retirement	Well above UK average
15-20%	On track for comfortable retirement	Good savings habit
10-15%	Making progress but may need more	Typical for UK workers
Below 10%	At risk of insufficient retirement	May need to increase contributions

What to Do If You Are Behind

Do not panic - but act now

The best time to start was 10 years ago. The second best time is now.

Max out employer pension match

If your employer matches contributions, this is instant return on your money.

Increase contributions by 1-2%

Small increases now compound significantly over 20+ years.

Review your ISA vs pension split

Pensions are usually more tax-efficient but ISAs offer flexibility.

Check Your Personal Target

Use Delphina to see exactly where you stand, how you compare to benchmarks, and what to do next.

Check If You Are On Track Plan Your Retirement

Frequently Asked Questions

According to UK data, the average net worth for a 40-year-old in the UK is around £60,000-£80,000, but this includes property equity. Cash savings alone average around £10,000-£15,000. However, averages can be misleading - your target depends heavily on your income, goals, and lifestyle.