This is to inform that by clicking on the link, you will be leaving our www.sc.com/inand entering a website operated by other parties:

Such links are only provided on our website for your convenience and Standard Chartered Bank does not control or endorse such websites, and is not responsible for their contents.

The use of such website is also subject to the terms of use and other terms and guidelines, if any, contained within each such website. In the event that any of the terms contained herein conflict with the terms of use or other terms and guidelines contained within any such website, then the terms of use and other terms and guidelines for such website shall prevail.

Thank you for visiting our www.sc.com/in


Financial priorities change with age, consider this before turning 40

Financial priorities change with age, consider this before turning 40

Financial priorities change with age, consider this before turning 40

Financial priorities change with age

Here are few steps that will help re-energize your financial plans and align your goals with new priorities.

Financial priorities change with age, consider this when you turn 40

The middle-age period in our lives is filled with equal measures of hope and anxiety. At 40, people are professionally established, more confident about their skills and worldly-wise through their life experiences.  It is a time for introspection and execution of well thought out plans, where things can no longer be driven by sheer impulse or blind emotion. Most people use the 40s as a building block for the next phase of their work lives and to strengthen their financial journey. Here are a few key steps that can help re-energize your financial plans and align your goals with new priorities.

Now or never for the emergency fund

Problem – The proportion of working individuals who stumble upon professional problems is far higher in the 40s than it is in their 20s or 30s. The race to the top in corporate hierarchy catches feverish pace in the forties. But, there may not be enough room for everybody at the top. Also, any setback on the work front can hit you far harder in the 40s than during the 20s or 30s. So, it would be prudent to prepare for a period of zero income due to job loss.

Solution – The solution lies in the emergency fund. This fund will work like your very own bank that gives you money to survive the cold and proverbial ‘winter’. All your monthly basic expenses, recurring liabilities like loan repayments, children related spends, household expenses and utility payments when added will be a number. The emergency fund should have 10-12 months equivalent of this number. It is that simple and easy.

You can make it even bigger by keeping extra money for unforeseen expenses and medical emergencies that may not be covered by health insurance.

Action – Try to keep 10% of your salary each month in this fund, and within a year or so, this contingency fund will be ready for use. You may use term deposits and recurring deposits to accumulate the amount. They will also earn interest in the interim. Once done, shift the funds to liquid mutual funds or a separate savings account. Check out the wide range of account options at Standard Chartered here.

Lower debt to a minimum

Problem – We can understand the need to borrow. Homes today are impossible without home loans. You may want to take a personal loan for your dream foreign trip. There are also loans given against your securities and bank deposits. Loans allow you to use your future income to make your dreams come true today. However, too much of anything is bad. If you’re in your 40s and still paying 40-50% of your income as loan repayment, now is the time to consolidate your debt and lower outgo.

Solution – You are just twenty years away from retirement. Thanks to inflation, maintaining the same lifestyle post-retirement will prove to be challenging if you don’t act now. Also, healthcare costs will slowly rise. This requires you to lower debt outstanding. Your loans have to come down or be replaced with ones with cheaper rates. This will ensure a lower monthly outgo for loan repayment and more resources for your retirement plan.

Action – For home loans, you may use Home Saver facility to reduce interest burden by keeping more savings in home saver account. Use this calculator for Personal loan EMI to migrate your personal loans to a cheaper option. Pay your high-cost credit card bills as soon as possible, but keep a credit card handy for all your emergency situations when you can’t access funds right away. Check out Standard Chartered’s value for money credit cards.

Also, remember that the next 20 years need you to save the maximum. Hence, widen your investment horizon to add more savings and lower tax outgo. Use Section 80C tax savings option by investing in ELSS mutual funds and insurance products. Grow your wealth by investing in Standard Chartered’s suite of third-party investment products. Learn more about them by clicking here.

The forties can be the new 30s if you play the financial planning game right. By reducing loans, saving and investing more and being prepared for all types of emergencies, you can truly be at peace. Widening your horizon and investing more should not be done at the cost of lowering your insurance covers. Take your health insurance after carefully studying the policy inclusions and exclusions, and consider having a personal health policy for the family, instead of relying on the policy provided by your employer. Good luck!


This document is for information and educational purposes only. It is meant only for use as a reference tool. It has not been prepared for any particular person or class of persons. The products and services mentioned may not be suitable for everyone and should not be used as a basis for making investment decisions. This document does not constitute investment advice nor is it an offer, solicitation or invitation to transact in any investment or insurance product. The value of investments and the income from them can go down as well as up, and you may not recover the amount of your original investment. Prior to transacting, you should obtain independent financial advice. In the event that you choose not to seek independent professional advice, you should consider whether the product is suitable for you. You should refer to the relevant offering documents for detailed information.

Mutual Fund investments are subject to market risk. Read scheme related documents carefully prior to investing. Past performance is not indicative of future returns.

Tax laws are subject to amendments from time to time. The user/investor needs to verify all the facts and circumstances with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information.

Standard Chartered Bank, India having its corporate office at Crescenzo Building C-38/C-39 G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051 is a licensed Corporate Agent of ICICI Prudential Life Insurance Company Limited (IRDAI Registration No. 105)  for life insurance products, Royal Sundaram General Insurance Co. Limited (IRDAI Registration No. 102) and Bharti AXA General Insurance Company Limited (IRDAI Registration No. 139)  for general insurance products and Max Bupa Health Insurance Company Limited (IRDAI Registration no. 145) for standalone health insurance products vide composite license number CA0028.

Participation of Standard Chartered Bank’s customers in any insurance scheme is purely voluntary, and is not linked to the availment of any other banking products or services from the Bank. The benefits/ features of products wherever mentioned are indicative only. For more details on risk factors and terms and conditions, please read sales brochure carefully before concluding sale. Insurance is the subject matter of solicitation.