Ask most people when they’re likely to need a financial planner, and they’ll probably say, “When I’m about to retire.”

But what if I told you the best time to start is in your 40s?

You’re entering the peak of your career, your earning potential is still increasing, and time is on your side.

If you start planning now, financial freedom, retirement, or even that non-executive director role you’ve been considering should be achievable without drastic changes to your lifestyle.

Leave it another 10 years, and it could be a very different story.

If you’ve made it this far, you’re already ahead of most of your peers and, frankly, most of the population.

So let Exhale give you a head start with our top 10 essentials all mid-senior level leaders working for large retailers need for a relaxed financial future

Essential #1: Planning early = balance

There’s a common misconception that financial planning is about saving as much as possible for retirement.

This couldn’t be further from the truth.

If you’re in your mid-40s, working for a large retailer, these are your peak earning years.

But it’s also a time when you’ve got your health and your family is still young. Long hours in the office may limit the hours spent at home, but that makes it all the more important to make the most of your time together and not hold back.

That’s why Exhale Financial Planning will actively plan for increased spending now, so you have the opportunity to create memories as well as prepare for the future.

Want to take the kids to Disney? We’ll build that into the plan.

Want to allow an extra £250 a month for cinema tickets or meals out with the family? Let’s put it in.

Prefer festivals without the camping? We’ll add glamping to the budget. All the fun, but with a clean toilet, warm shower and a proper bed.

Action step: Work out your current discretionary spending and see what can be safely allocated to create memories now.

Takeaway: Good financial planning should give you both: confidence about tomorrow and freedom to enjoy today.

Essential #2: Your mortgage or your pension

Whether to overpay the mortgage or save more into your pension probably the number one question asked by both prospective and ongoing clients.

And the answer? It depends.

There’s nothing more celebrated in the UK than paying off your mortgage. But before you commit, it’s worth weighing up your options:

Option 1: Overpay

• Positives: Peace of mind, less debt, your mortgage reduces faster.
• Negatives: Your capital is tied up. You can’t unlock it until you move or downsize, something that’s unlikely in your 40s or 50s.

Option 2: Invest in your pension

• Positives: Potential for higher returns over the long term. Plus, as a higher or additional-rate taxpayer, you’ll receive 40–45% tax relief on contributions, which often trumps the interest you’d save on your mortgage.
• Negatives: Pensions are also illiquid. You can’t access them until at least age 57.

Option 3: A balanced approach

• Positives: Overpay by up to 10% a year (avoiding penalties) so your mortgage is reducing before retirement. At the same time, pension contributions attract valuable tax relief at 40–45%. It’s the best of both worlds: reducing debt while saving tax efficiently for the future.

This decision is as much about emotions as it is about numbers. For some, the mortgage will keep them awake at night. For others, it’s barely a concern. There’s no single right or wrong answer only what feels right for you.

Action step: Review what percentage of your disposable income goes to mortgage overpayments versus pension contributions and decide what balance works for you.

Takeaway: The best plan is the one that balances peace of mind today with smart decisions for tomorrow.

Essential #3: The emergency fund

Better to be prepared than to hope.

The world of retail is fast-paced, and the threat of redundancy is never far away. Stress can cut a career short. Cars break down. Unexpected bills always seem to arrive at the worst time.

That’s why the foundation of any solid financial plan is an emergency fund. You should have enough cash available to cover at least six months’ worth of outgoings.

And yes, it has to be in cash. That means instantly accessible, not locked away in investments and definitely not earmarked for holidays.

Action step: Work out what six months of expenses look like for you, and ask yourself honestly: do you have that in cash?

Takeaway: An emergency fund isn’t exciting, but it’s the safety net that keeps everything else on track.

Essential #4: Getting comfortable with risk

“We’re risk-averse.”

It’s probably the most common phrase I hear as a financial planner when I talk about investing. But in most cases, it isn’t really true. People usually mean: “I don’t understand how investing works, and I’m worried I’ll lose everything I’ve worked for.” And that’s perfectly normal.

Risk in investing is simply how much the value of a share, fund, or investment moves up and down over time. Typically, the more risk you take, the greater the potential return. But the most important factor is time.

Short-term goals should have minimal risk. Long-term goals, 15+ years away, can tolerate more risk. Remember: no risk is a guaranteed loss. Inflation erodes spending power even if your cash sits untouched.

Action step: Look at your financial goals. Which are short-term, medium-term, and long-term? Match the risk level of your investments to the time horizon of each.

Takeaway: Risk isn’t the enemy. Unmanaged risk is. Get comfortable with it, and it becomes your ally.

Essential #5: company shares

Those “risk-averse” retailers are also those often sat on hundreds of thousands of pounds’ worth of company shares, usually part of a bonus scheme, with no real strategy.

Consider two things:

1. The risk. Large retailer share prices fluctuate. Some go bust. Woolworths and Claire’s are no longer here. WHSmith’s share price crashed 40% due to an accounting error. Company fortunes can change. If all your wealth is in one basket, any fluctuation has a considerably impact.
2. Your long-term goals. Do these shares actually support your plan? Diversification can create more reliable growth. If your company shares represent more than 10% of your wealth, it may be time to consider an alternative strategy.

Action step: Review what percentage of your wealth is in company shares. If it’s over 10%, speak to a Exhale about a more diversified approach.

Takeaway: Concentration risk can undo years of smart decisions. Spread it out, and let your wealth work harder for you.

Essential #6: Don’t ignore HR

One client ignored HR and ended up owing HMRC £15,000.

Each year, if you earn above a certain level, HR will nudge you to say you may be over contributing into your pension. Earnings include salary, bonuses, and vesting shares. If you earn over £200,000, your allowance may taper, and any excess contributions require repayment of tax relief.

Action step: If your income is near or above £200,000, check whether tapering affects you. Don’t assume HR will fix it for you.

Takeaway: A five-minute check today could save you a five-figure tax bill tomorrow.

Essential #7: Those old workplace pensions

If you’ve had a successful career, you may have multiple old workplace pensions. Consolidation can potentially help for three main reasons:

1. Alignment with your plan – not all schemes reflect your financial plan or risk attitude.
2. Consistency – costs, accessibility, and flexibility vary.
3. Simplicity – Most people prefer everything in one place, easy to understand and manage.

Don’t forget your current workplace pension. It may default to a fund that doesn’t match your personal plan.

Action step: List all pensions, check costs, investments, and alignment with goals.

Takeaway: Pension consolidation isn’t about products — it’s about peace of mind.

Essential #8: How much is enough

If you work for a large retailer, your pension scheme is likely generous.

Sainsbury’s, Morrison’s, Tesco, Marks & Spencer all contribute (employer and employee) between 15–20%. But how do you know if it’s enough?

Most people, when they reach financial freedom or retirement, want to maintain their current lifestyle and maybe even spend a little more. (Free time isn’t free).

A simple ready reckoner: take your target net spending in retirement and divide by a safe withdrawal rate of 5%.

Example: Target spending £75,000 ÷ 5% = £1,500,000 needed by retirement.

Compare this with your current pension and investments. The difference shows how much more you need to save before retirement. Bonuses and shares can help you reach that target faster.

Action step: Calculate your retirement target, compare it with your current pension pot, and identify the shortfall.

Takeaway: Knowing your numbers turns uncertainty into a clear, actionable strategy for a comfortable retirement.

Essential #9: Insurance

Insurance may be the least glamorous part of financial planning, but it protects what matters most.

Death-in-service cover is common in retail, but it’s rarely enough. Calculate life cover based on your circumstances, not just salary multiples. Consider income protection policies too, and check how long your employer will pay if you’re off long-term.

Private Medical is another great perk and it might be worthwhile adding your family to your plan if affordable.

Action step: Check your cover. Does it protect your family if you’re not around or off work long-term?

Takeaway: Insurance isn’t about you. It’s about protecting the people you love.

Essential #10: Plan your estate

No one likes to think about it, but planning your estate is essential. A will protects your children and your assets. Pension expressions of wish ensure your retirement savings go where you intend. Powers of attorney are not just for the elderly, they can protect your finances and health if you lose capacity.

Action step: Ensure you have a will, updated pension wishes, and powers of attorney in place.

Takeaway: Estate planning isn’t about predicting the worst, it’s about protecting your family if the unexpected happens.

Conclusion

Starting financial planning in your 40s is ideal but there’s a lot to consider. Choosing to partner with an expert can take the weight off your shoulders and give you the time to focus on what really matters: your family and career

With these 10 essentials, you’ll have the foundations for a secure, relaxed financial future one that lets you enjoy today while preparing for tomorrow.

TLDR: there’s a lot of moving parts to a successful financial plan. Book a free 30 min catch up to see how Exhale FP can help.

Category: Retirement