7 smart investment moves for women in their 40s
Published 21 January 2026
If you are a woman in your 40s, chances are you have felt that moment of panic: “I really should be doing something about my finances… but I do not know where to start.” You may have money sitting in savings or an old pension, but the weight of responsibility feels heavy. You want to make smart choices, yet you do not want to be patronised, overwhelmed with jargon, or brushed aside by advisers who do not understand your world.
This article is written for women like you. Women who have worked hard, who are juggling family and career, and who now want their money to work harder. Your 40s are a critical decade for investing: retirement is no longer a distant dream, children may be growing, and career opportunities or transitions can reshape your financial picture.
Here, we will walk through seven smart investment moves tailored for women in their 40s. These are practical, UK-specific strategies that can help you grow wealth, reduce risk, and feel confident about your financial future. And if at the end you are ready to take the burden off your shoulders, you will see how you can book a call with Shalini Kanap, female financial adviser, who understands the worries you face and can guide you with empathy and clarity.
Why your 40s are a critical time for investing
The power of compounding still works for you
Even though you may feel you started late, your 40s are not too late to build wealth. The power of compounding still works, especially if you consistently invest over the next 20 to 25 years.
Midlife responsibilities bring financial strain
A lot of women in this decade are in the “sandwich generation”: supporting children while also caring for ageing parents. This can limit spare cash for investing, but even small, consistent amounts could grow significantly.
The gender investment gap
The gender investment gap is where women invest less money and start investing later than men, leading to significant wealth differences, with women missing out.
Feedback from my female clients is that they have avoided investing previously due to not understanding the risks and complexity being a barrier. Your 40s could be the time to close that gap.
Investment move #1: Build a solid financial foundation
Before diving into investment funds or property, ensure your base is secure.
Emergency savings: Keep at least 3–6 months of expenses in an easily accessible savings account, for those expenses you do not expect (think car troubles, new boiler, dentist bill for example) or if you are facing an unexpected drop in income.
Clear high-interest debt: Credit card interest can wipe out any investment gains.
Protection policies: Income protection and life cover help to safeguard your family if illness strikes.
With a strong foundation, you will feel more confident taking the next step into investing.
Investment move #2: Review and boost your pension strategy
Your pension is likely to be your single biggest source of income in retirement. In your 40s, you are likely to have over two decades of growth ahead.
Trace old pensions: Many women have small pots from past jobs. It is crucial that you track them down so you know what you currently have, and analyse whether they are invested appropriately for your circumstances.
Boost contributions: Even a small increase now can have a large impact later. Take advantage of any employer matching.
Check performance and fees: Ensure charges are outweighed by returns. Review fund options and switch if necessary.
A workplace pension, personal pension or a self-invested personal pension (SIPP) can be highly tax-efficient. Do not miss out on the government’s tax relief on contributions.
Investment move #3: Use tax-efficient investment structures
The UK offers valuable ways to shelter your investments from tax.
Stocks & shares ISA: You can invest up to £20,000 each tax year, with no tax on growth or withdrawals.
Lifetime ISA: If you are under 40, you can open one for retirement or a first home, with a 25% government bonus (up to a maximum of £4,000 per tax year).
Pensions: Contributions receive tax relief at your highest marginal rate. Anything above the basic rate of tax must be claimed via the individual's tax return.
These wrappers help your money grow faster because less goes to HMRC.
Investment move #4: Diversify across asset classes
Putting all your eggs in one basket is risky. A balanced portfolio spreads risk and opportunity.
Equities: Shares in UK and global companies for long-term growth.
Bonds: Government or corporate bonds provide income and stability.
Property: Buy-to-let, real estate investment trusts (REITs), or your own home equity.
Diversification reduces volatility and helps you sleep better at night.
Investment move #5: Decide where you want to DIY
Investments can be managed on your behalf at a cost. This option suits someone who is busy and does not want to manage the investments themselves.
Alternatively, those that prefer to monitor and manage their own investments, consider what you will be investing in:
Index funds and ETFs: These track stock market indices at low cost.
Balanced or multi-asset funds: Good options if you want simplicity.
Rebalancing: Review your mix annually to keep your risk profile aligned.
Investment move #6: Create passive income streams
Investing is not just about the future. You can also generate income today.
Dividend-paying shares: Regular income alongside capital growth.
Rental property or REITs: Property can provide monthly income, though it requires careful management and a thorough understanding of costs, profit margin and taxation.
Digital products or royalties: Side hustles, books, or online assets can add additional streams.
Having more than one source of income creates resilience and peace of mind.
Investment move #7: Regularly review your portfolio and adjust
Life in your 40s can change quickly. Your investments should evolve with you.
Major life changes: Marriage, divorce, inheritance, or children leaving home all affect your financial plan.
Shift toward security: As you near your 50s and 60s, gradually reduce risk.
Estate planning: Consider inheritance tax and whether trusts or gifting strategies might help.
A portfolio review once a year keeps you on track and ensures your investments still reflect your goals.
Overcoming the barriers women face
Many women hold back from investing because they fear risk, feel they lack knowledge, or simply do not know who to trust. If this is you: you do not need to do this alone. An empathetic adviser who understands your world can simplify the process and guide you step by step.
The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. An investment in equities and shares will not provide the security of capital associated with a deposit account with a bank or building society. However, please bear in mind that over the long-term inflation will erode the purchasing power of your capital.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief is generally dependent on individual circumstances.
Cash and Lifetime ISAs are not available through St. James's Place.
Trusts are not regulated by the Financial Conduct Authority.
Action plan to get started
Audit your finances: list pensions, ISAs, savings, and debts.
Set goals: retirement income, financial freedom by 55.
Choose an investment move to start this month.
Automate contributions to build consistency.
Book a no-obligation call with Shalini Kanap to take the worry off your shoulders.
Quick takeaways
Your 40s are a vital decade to invest for the future.
Start with a strong foundation of savings and protection.
Review pensions and increase contributions
Use ISAs and pensions for tax efficiency.
Diversify across assets to reduce risk.
Focus on low-cost passive funds.
Build multiple income streams and review regularly.
Conclusion
Your 40s can feel overwhelming. You may be juggling career, family, and future worries, all while feeling the urgency to get your money in order. The good news is, you are not too late. By making these seven smart investment moves, you could help build security, create opportunities, and give yourself peace of mind.
You do not need to do this alone. If you are tired of feeling burdened and unsure, and you want someone who understands your situation and will explain things clearly without judgement, then now is the time to take action.
Book a call with Shalini Kanap, female financial adviser, and take the first step toward turning financial worry into financial confidence.
Frequently Asked Questions
1. Do I need pension advice if retirement feels far away?
Yes. Early planning often provides more flexibility later.
2. How often should I review my pension?
Regular reviews help ensure your plan still reflects your circumstances.
3. Is pension advice only for high earners?
No. Pension planning is relevant at many income levels.
4. Can pension plans change over time?
Yes. Plans should evolve as your life changes.
5. What should I prepare before a pension meeting?
Basic details of existing pensions and a sense of your future goals.
Other blogs you may be interested in
Why would someone use a financial adviser? Making informed decisions about your financial future
How to find the right financial adviser and take control of your money
SJP approved 21/01/2026
