Ideally, it’s prudent to start planning for retirement as early as possible, but sometimes this is not possible due to various circumstances. Although you may think you’re behind in planning in your 40s, don’t be dismayed, it’s best that you get started now.

Your 40s are an excellent time to start making financial decisions because chances are you’re no longer trying to figure out where you want to go in life. Your thinking is clearer. You have a better grasp of who you are, what you can do, and what you want.

With all the changes we experience as we age and the anxiety that can accompany some of them, worrying because of our reduced income shouldn’t be one of them. You’ve worked very hard, and retiring should be your reward for that period in your life, but a happy retirement, a time when you can finally relax and engage in activities you enjoy while tightening bonds with loved ones, requires preparation.

Let’s take a look at five ways you can plan for a financially secure retirement.

Save! Save! Save! – We know it’s important to save, but for many of us, it seems impossible. Either you spend too much and have huge amounts of debt you’re still working through, or though debt-free, you believe your salary is too minimal. Nevertheless, you must sacrifice and put aside some portion of it. At this stage in life, saving shouldn’t be considered optional but necessary.

That said, creating a budget and plan can help curb spending and diminish debt. Check out this article on Debt Demolition which offers several practical ideas that can help. Meanwhile, small salaries can be supplemented with part-time jobs or through monetising talents. Another alternative is to attempt to negotiate a salary increase with your employer. Ultimately, the goal is to spend less and save more so wave goodbye to extravagance.

Activate Other Sources of Income – We mentioned this above briefly but will explore it more here. Regrettably, some 40-something-year-olds do not have three times their salary saved which is the recommended amount. Rather than feel despondent, there are other ways you can bolster your income.

For one, you can do an inventory of your skills and talents, and then determine their viability for monetising and then activate other sources of income by offering these skills at a cost. The best part is that this can be done while maintaining your regular job. This extra income can go towards your retirement savings.

Pay Attention to NIS – National Insurance (NIS) is a tax deducted from our earnings by employers. Among other benefits, it secures us a pension later in life. The monthly payouts are earned because of the contributions made during your years of employment. Usually, your employer deducts these from your earnings. In most instances, a specific number of contributions are required to qualify for a full state pension.

Now is an excellent time to check your payment record, especially if you’re self-employed. You can also make voluntary payments to catch up. Also, keep abreast of any developments or changes being made to the scheme. For example, some countries have extended the pensionable age to 68. This development makes our first two points so important.

Consider Investing – Making investments can seem daunting because it requires expertise that many of us may not have, but it shouldn’t be ruled out. Seek out a reputable financial advisor for guidance on investment opportunities. The aim is to invest in something that offers dividends in the long term. You can also examine ways to expand your current investment portfolio.

Expand Interests – Now that we’ve got the major financial stuff out the way, let’s deal with other aspects of your well-being. In addition to acquiring new hobbies, you can expand your current interests. You can strengthen your skills by dedicating more time to them and exploring new areas. The benefit of this is twofold. First, doing something you enjoy can be therapeutic and improve your sense of well-being. Second, refining your interests may present an opportunity to earn additional income.

Growing older is exciting! You can plan for the life you want, no matter where you are presently.

Sources: AARP, Nerdwallet, and Rockland Trust.