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It’s easy to feel anxious as you approach the end of your 40s. You’re probably in the final sprint before retirement, and even if you’re not feeling fully prepared, you still have some time to catch up. This is also likely to be the age when you hit the peak of your career and earnings potential.
However, this is the age when you’re likely to feel more financially vulnerable to shocks. One bad investment move, unexpected layoff, surprise bill or medical emergency can be enough to derail your long-term plan, leaving you little time to recover. It is especially true for households without savings.
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“It can take them years to regain a sense of financial stability,” Rich Johnson, vice president of financial security at the AARP Public Policy Institute, said in a recent report (1). “That kind of financial shock can be especially debilitating for people in their 50s and early 60s, because it leaves them less able to put money away for their retirement.”
This phase can be overwhelming. But decades of financial data point to a handful of markers that, when you clear them by your late 40s, put you well ahead of the typical American and on track for a comfortable retirement.
Here are five of those markers. Count how many you’ve already hit.
1. $0 in non-mortgage debt
Consumer debt is a growing concern, across all age groups. Households around the country had an average of $154,152 in consumer debt at the end of 2025, according to CNBC’s analysis of Federal Reserve data (2). For Generation X (aged 45 to 60), the average balance was $158,105, but even households in their 80s or older had $38,460 in consumer debt.
Simply put, many ordinary Americans are carrying consumer debt, which includes credit card balances, personal loans and car loans, into retirement. Servicing these loans is an unpleasant financial drain.
With that in mind, if you’ve managed to pay off or significantly reduce your non-mortgage debt by your late 40s, you’re probably in better shape than many of your peers. And if you haven’t, debt consolidation could be one of several ways to mitigate the issue.
For instance, consolidating all your debts into a personal loan through Credible is an effective way to get rid of your debt faster. Instead of juggling multiple monthly payments, you’ll have one predictable payment to manage each month.
Through Credible’s online marketplace, finding the right loan becomes much simpler. Credible lets you comparison-shop for the lowest interest rates with just a few clicks.
If you owe a substantial amount, you may also want to see if you qualify for a debt relief program to help clear a significant portion of your debt.
With Freedom Debt Relief, you can speak with a certified debt relief consultant for free, who can show you how much you can save by partnering with them.
If you’re eligible, they can negotiate settlements with your creditors until all of your enrolled debt is resolved.
2. Above median income or net worth
If you have or make more money than half of the people in your age group, it’s probably a clear sign that you’re ahead of the game.
The median net worth of people aged between 45 and 54 was $247,200, according to Federal Reserve data analyzed by Fidelity (3). Meanwhile, SmartAsset found the median salary of Americans between the ages of 45 and 54 was $1,377 per week, or about $71,604 per year, in the third quarter of 2025 (4).
If you’re above one or both of those benchmarks, you’re on a better course than 50% of people your age. If you’re falling behind, an upgrade to your career or investment plan could help. Just a few good money moves in your mid-to-late 40s could put you ahead of the pack.
If you’re looking to take your investing to the next level, platforms like Moby can help you learn from a community of experienced investors about putting your money to work in the stock market. This platform offers expert research and recommendations to help you identify strong, long-term investments backed by advice from former hedge fund analysts.
In four years, and across almost 400 stock picks, their recommendations have beaten the S&P 500 by almost 12% on average. They also offer a 30-day money-back guarantee.
Moby’s team spends hundreds of hours sifting through financial news and data to provide you with stock and crypto reports delivered straight to you. Their research keeps you up-to-the-minute on market shifts and can help you reduce the guesswork behind choosing stocks and ETFs.
Plus, their reports are easy to understand for beginners, so you can become a smarter investor in just five minutes.
3. Retirement accounts worth 3 to 6 times your annual salary
According to Fidelity’s widely cited benchmark (5), most Americans need a retirement account worth roughly 10 times their annual salary to consider retirement at age 67. The same benchmark also recommends that these accounts should be worth three times your annual income by age 40 and six times by age 50.
For instance, an experienced marketing consultant with an annual salary of $120,000 would need roughly $360,000 in a 401(k) plan or IRA at age 40, and $720,000 by age 50, to be on track for a comfortable retirement.
That’s a big jump to make in just 10 years.
If you’re lagging behind this benchmark, an automated savings app like Acorns can help you get on target faster. This app rounds up every purchase and invests the spare change into a diversified portfolio of ETFs, meaning that your $5.50 latte turns into a 50-cent investment managed by leading firms like Vanguard or BlackRock.
Sign up today and get a $20 bonus investment.
4. Have a robust, written plan (retirement, investment and estate)
A vague, mental plan for the future probably isn’t enough when you’re in your late 40s. At this stage, you probably have a lot at stake, and perhaps, you have a family that depends on your contingency plans. So, you need a well-crafted plan on paper, not just for your investments and retirement but also for your estate.
However, about 48% of Americans don’t have a written financial plan, according to a retirement study from the Allianz Center for the Future of Retirement (6). So, when you write one, you already put yourself in a better position than almost half of the U.S. population.
A financial advisor can help crunch the numbers and build a plan that works.
But hiring an advisor can be a lifelong commitment, which might make or break your retirement. That’s why finding reliable advisors is crucial.
That’s where Advisor.com (7) can come in. The platform connects you with an expert near you for free.
Advisor.com (7) does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.
Just enter a few details about your finances and goals, and Advisor.com (7)’s AI-powered matching tool will connect you with a qualified expert best suited for your needs based on your unique financial goals and preferences.
Finding the right advisor isn’t always easy — there’s no one-size-fits-all solution. That’s why Advisor.com (7) lets you set up a free initial consultation, with no obligation to hire, to see if they’re the right fit for you.
5. Have essential insurance coverage
From long-term care to property insurance, a robust policy acts as a safety net for your personal finances. A portfolio of different insurance policies, with attractive rates and terms, potentially puts you in the top tier of American households.
By using a comparison platform like Insurify for home or car insurance, you can instantly view quotes from top-rated providers to ensure you aren't paying a hidden ‘loyalty tax’ to your current insurer.
Just answer a few basic questions, and Insurify will show you the most affordable deals in as little as 3 minutes.
Not only is the process 100% free, but you could also save up to 15% by bundling your car and home insurance.
In the end, if you hit these five milestones at or before your mid-40s, you’ll probably be fine.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
AARP (1); CNBC (2); Fidelity (3), (5); SmartAsset (4); Allianz Life (6); Advisor (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
