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    Guide to Achieve Financial Freedom in Your 40s

    Last Updated On 04-04-2022

    When you think about your life in your 40s, what do you envision? Do you think you will continue to work passionately, or do you want to be free from the routine of working 9 to 5? Do you want to keep supporting your family or want to earmark some funds for the future of world travel? Whatever you dream about, it is undeniable that the 40s are an age where your financial responsibilities towards yourself start to increase, and your life post-retirement gets closer.

    Retirement is always depicted as a time full of rainbows and leisure. But to get that kind of retired life or your very own version of retired life, you will have to start consciously planning for your golden years beforehand. If you are looking forward to early retirement, this retirement guide will help you get started on your journey to achieve financial freedom in your 40s.

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    Envision the standard of living you want.

    The first step to continue your financial independence well after your 40s is to dare to imagine the future you want. Think about what your needs would be in your 40s. Whether you would still have financial responsibilities towards your dependents or whether you would like to balance duties with self-expenditure? Think about the standard of living you would like – whether it would match the one you are currently having or lessen or grow with time? The thing is – visualizing the future you desire is not a one-size-fits-all path. It is highly personal and varies from person to person. The practical way of picturing your future includes assessing how much money you would require to live. For this, you will have to assess specific concrete factors that include:

    • Day-to-day costs on utilities/ bills
    • Child education/ marriage expenses
    • Leisure/ travel/ recreation costs
    • Health care costs, debts, loans, and the like
    • Spousal expenses (if you are the sole income earner)
    • Parental expenses (if your parents are dependent on you)
    • A new business venture/enterprise
    • Donating to charitable causes

    Basically, you need to come up with an aggregate estimate of your monthly/annual expenses. Once you arrive at that number, you can move to the next stage of planning your late or early retirement.

    Start early retirement saving and investing

    The execution phase of finding financial freedom in your 40s or after starts and ends with saving and investing. Regular saving and diversified investing are the only two concrete
    ways of keeping aside funds and multiplying them. While saving is relatively easier and is essential to fuel investing, what you must remember is that it should be consistent and as early as possible.

    Savings alone are not enough to keep you afloat in the 10, 20, or 30 years. It is necessary to invest if you want your money to increase through the power of compounding. Here are some must-invest instruments ideal for ensuring financial independence at the later stages of life:

    • Retirement savings plan/annuity plan

      A retirement savings plan or an annuity plan are life insurance plans specifically designed for securing a second income post-retirement. With these best retirement plans, you can get guaranteed and regular income every month, quarter, or year. These retirement plans aim to become a primary source of income for your golden years.

    • Unit-Linked Insurance Plan/ ULIP

      A ULIP is another type of life insurance plan that gives you the dual benefits of life insurance protection and wealth creation. With ULIPs, you get to secure your loved ones in your absence and simultaneously grow your investments through market-linked returns.
      To receive good returns from ULIP investments, you have to pay the policy premiums that provides life cover as well. These premiums can be affordable if well planned. The earlier you start, the premiums you will have to pay will be lower, and you can reap more benefits from your investments.

    Keep inflation in mind at every stage of life.

    When you are planning for your retirement or life after the 40s, you must keep the increasing inflation rate in mind. Due to inflation, the prices of goods and services keep increasing. So, what cost you ₹100 today will cost ₹1,000 in the next 10 years. The jump in goods and service prices are determined by factors beyond your control, and savings alone is not enough to negate their effects. That is why it is all the more crucial to ensure your investments are bridging the gap created by inflation.

    Whenever you invest in an annuity plan, retirement savings plan, or any other investment, remember to factor in the present inflation rate. So, considering the amount you want to accumulate in your savings/ investments, be sure to add a percentage increase to it.

    Ensure you are emergency ready

    While the 40s will strengthen your career footing, financial independence, and bring about more clarity in life, it might also open up a world of health scares. It is an inevitable reality that health problems catch up with us as we get older, and their threat only increases. While you can maintain a healthy lifestyle and minimize stress to stay in the pink of health, it is always wise to have a financial backup in case things go wrong. In short, you must be emergency-ready to tackle any medical emergency that comes your way.

    Ample finances are necessary to get you access to quality and timely healthcare, fund your recovery, and ease your family. So, it is crucial to have enough set aside through your savings
    and investments. You can figure out how much you require for healthcare by checking the average healthcare rate in India.

    To sum it up:

    To achieve financial freedom in your 40s, you must start as early as possible. When you give your savings, investments, and endeavours the gift of time, they reap more returns. Planning
    and execution go hand in hand, so remember to do both. With the financial freedom you acquire, you can fulfil your goals and shape the second innings you desire. To know more about term planterm insurance, life insurance and long term savings visit PNB MetLife website.

    Doesn’t the thought of retirement sound blissful? No work, no deadlines, and all your hours spent doing the things you love, like travel, painting, and even napping in the afternoon! If you want your retirement to be what you have always dreamed of, start retirement planning now and save a considerable retirement corpus in time. The online Retirement Calculator can help you plan your future financial goals and ensure you achieve them within the stipulated time. 


    The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

    PNB MetLife India Insurance Company Limited
    Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
    IRDAI Registration number 117 | CIN U66010KA2001PLC028883
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    Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details.
    Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
    The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
    Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website:, Email: or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.

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    As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at or You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.

    PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance PlansTerm PlanProtection PlansLong Term Savings Plans , Retirement Plans & Child Education Plan.

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