With over two decades of financial planning behind me, I’ve walked a long journey with clients in their forties—many of them raising children, servicing a bond, running businesses, and trying to save for retirement. I can relate on a personal level because I too once stood in that space: a father of three, a fledgling business to grow, a property with a sizeable bond, and a future that felt both exciting and overwhelming. Your forties are financially intense, and it’s easy to lose momentum on the long-term decisions that matter most. Here are some of the most common financial mistakes I’ve seen—and made—and how you can avoid them.

1. Putting retirement on the back burner

At forty, it’s tempting to focus only on the urgent—school fees, bond repayments, family holidays. Retirement feels decades away, and many believe they’ll catch up later. The reality is that time is no longer a luxury. The compounding effect of money is most powerful when you have time on your side—and in your forties, that window begins to narrow.

Personally, we made the calculated decision to put our retirement fund contributions on hold while building our business. It was a conscious trade-off, made with the understanding that the equity in the business would grow in value and ultimately allow us to play catch-up later on. For some, this may be a sound strategy, but it must be accompanied by a clear plan to resume contributions and accelerate savings once income stabilises. For most people, however, putting off retirement funding indefinitely is a costly mistake. In this decade of life, try to maximise contributions to your retirement annuity or employer fund, and escalate your savings as your income grows.

2. Letting lifestyle creep undermine wealth

One of the hidden dangers of midlife is lifestyle inflation. As your income grows, so do your expenses—new cars, international travel, private education, and home upgrades. We’ve sat across from many clients who earn handsomely but struggle to show real net wealth. I’ve also lived it: the pressure to keep up, to provide, to enjoy the fruits of your labour.

The key is intentional living. Start with a values-based budget—one that prioritises what truly matters to your family and filters out unnecessary spending. Know where your money goes, track your expenses, and revisit your financial goals regularly. A bigger paycheque shouldn’t mean a bigger lifestyle—it should mean bigger investments, more security, and faster progress toward financial freedom.

3. Relying on debt to stay afloat

Midlife comes with expensive surprises—a burst geyser, a medical emergency, sports tour costs you forgot to budget for. Many turn to credit cards or personal loans to bridge the gap, creating a dangerous cycle of dependence on expensive debt. Instead, build an emergency fund with at least three months’ worth of expenses. This gives you breathing space when life happens—and it will. I remember using our emergency fund when my car needed unexpected repairs while the business was still young. That fund kept us from slipping into the debt trap.

4. Failing to review your insurance needs

Your forties are a moving target. Your income changes, your debt levels fluctuate, and your dependants’ needs evolve. Yet, many people fail to review their life and disability cover, which leaves them either under-insured or paying unnecessarily high premiums for outdated cover. Every two years—or when a major event happens—revisit your policies. Are you earning more now? Do you have more debt than before? Are your kids still financially dependent? Make sure your cover matches your reality. And as you trim down unnecessary insurance cover, consider redirecting those premiums toward your retirement funding. Those reallocated amounts, though small initially, can make a significant difference over time.

5. Postponing estate planning

It’s easy to assume you’ll get to your will ‘one day.’ But that day doesn’t always arrive. Your forties are the time to ensure your estate plan is in order—especially if you have children, own property, or hold life cover. We’ve seen too many estates become legal nightmares because someone left things too late. Draft a valid will, nominate guardians for your children, and ensure your beneficiary nominations on retirement funds and life policies are accurate. If you have a trust, review it regularly to ensure it’s still relevant and well-managed.

6. Ignoring the impact of tax

Tax efficiency becomes increasingly important in your forties, especially as your investments grow and your income increases. Too often, we’ve come across clients who are paying unnecessary tax simply because their portfolios weren’t structured correctly.

Use retirement annuities to reduce taxable income, consider tax-free savings accounts, and plan capital gains across tax years where possible. Work with a planner who can design a tax strategy tailored to your specific goals. A well-structured tax strategy can add years to your investment capital.

7. Overlooking healthcare planning

At forty, you might still be in good health—but that can change in a heartbeat. We’ve watched clients struggle to access quality cover after being diagnosed with a chronic illness in their late forties. If you’re not on a medical scheme or if your cover is limited, now is the time to act.

Add gap cover to protect against medical shortfalls and consider dread disease and income protection benefits. Importantly, join a scheme before you are penalised as a late joiner. South African medical schemes impose late joiner penalties that increase the cost of cover permanently if you join after age 35 without prior membership. The earlier you act, the more affordable and comprehensive your healthcare options will be.

8. Prioritising your children at your own expense

As a father of three, I understand the desire to give your kids everything—education, experiences, support, material belongings. But doing so at the expense of your own financial stability is counterproductive. We’ve seen clients cash in investments, pause retirement savings, and even take on new debt to help out their adult children.

There’s also immense social pressure to send children to expensive private schools, even when excellent government schools are available. Support your kids, but not to your own financial detriment. Secure your retirement first—then assist where you can. One of the greatest gifts you can give your children is your own financial independence.

9. Avoiding professional financial advice

Many people in their forties believe they can handle their finances alone. But by this point, one’s affairs are generally complex—property, tax, education planning, retirement strategy, estate planning, business finances. We’ve been in this industry long enough to know the cost of DIY mistakes. Our advice is to partner with a Certified Financial Planner® who can help you see the bigger picture and develop a plan that evolves with your life. As with many financial planning myths, the belief that advice is only necessary at retirement can result in missed opportunities during the very years when good decisions matter most.

10. Not visualising the finish line

When I was in my forties, retirement felt like a blurry concept—something far off, to be figured out later. But you need clarity. How do you want to retire? Where will you live? What will you do with your time? How much will that cost? Take time to paint the picture. Use those details to drive your planning decisions. The clearer your retirement vision, the more motivated you’ll be to make the sacrifices required now.

Your forties often bring a combination of increased responsibilities, career progression, and financial pressure. However, with sound planning, discipline, and professional guidance, this decade can serve as a strong foundation for long-term financial security. By avoiding common mistakes, you can position yourself—and your family—for greater stability and success in the years ahead.

Have a wonderful day.

Sue