If you’re in your 40s and 50s, don’t worry – now is a great time to start saving seriously.

Young investors may have had an earlier start, but the advantage most have in their 40s and 50s is a better income and possibly more savings under their belt.

You still have many years ahead to start building a nice retirement fund, so don’t worry.

Here’s how:

Minimalist life focus

• Audit your life ruthlessly – Subscriptions, second car, unused rooms – what opportunities do you have to cut spending?
• Declutter mentally and physically – Could a good clear out, garage sale, or tip run help you find some clarity? Even earn some money selling stuff you don’t need or use. The less you have, the simpler your life – and your families – will be.

Financial strategy

• Use salary sacrifice to reduce tax – Not only is this tax free into your pension, but many employers will also match contributions or add what they would’ve paid otherwise in National Insurance – this is free money! Any earnings in a high-tax bracket (such as 40%) can instead be routed to your pension to avoid paying this tax.
• Use ISAs for flexibility – This isn’t as optimal as pension contributions, but it’s the next best thing. Take advantage of ISAs for tax-free investing and withdrawals in the stock market, in an account where you can access it if you need it.
• Alternatively, invest in property with strong rental yield.
• Can you downsize? This is worth considering to release equity which could be put to good use, and you probably don’t need such a big house anyway?
• Automate everything – Set up automatic transfers to your ISA, so investing happens before you have a chance to spend it.

Your goal

This is the period of your life where you likely earn the most you ever have, so capitalise on it.

Readjust your current living situation – property, car, possessions – to free up equity you can use to effectively build wealth for your retirement.

Or, if investing in equities and bonds, to take the pressure off paying off your mortgage now and taking a lump sum from your pension later to cover it.