There are many items we struggle to find a use for, but money is rarely one of them. Most people face regular expenses such as housing, clothing, food, transportation, and leisure, and these priorities often push saving down the list. For practical guidance on building a retirement plan, see Planning for Retirement: Tips and Insights.
The Employee Benefit Research Institute, a nonprofit that studies employee benefits and economic security, reports low confidence in retirement preparedness among workers. Only about 16% of workers say they feel very comfortable with their retirement savings, while nearly half say they are not too confident (24%) or not at all confident (22%) that they will have enough money to live comfortably in retirement.
Below are some commonly reported barriers to saving for retirement and practical notes on each.
I lack the income to save for retirement.
Surveys show a portion of workers say they cannot afford to participate in employer plans or save beyond basic expenses. Even so, many households can find small amounts to set aside. One survey found that a majority of both savers and non-savers said they could afford an extra $20 per week toward retirement.
Small, consistent contributions add up. For example, saving $80 per month at a 6% annual return from age 30 can grow substantially by retirement age.
I'm too old to start saving for retirement.
Starting earlier benefits long-term growth, but it is not too late to begin. A one-time investment made later in life still earns interest and contributes to retirement income, and many retirement plans allow additional catch-up contributions for older participants.
There’s no need to save much because I’ll have a pension or Social Security.
Financial experts generally estimate retirees need roughly 70% of pre-retirement income to maintain their lifestyle, yet many workers overestimate guaranteed sources. Employer pensions cover a minority of private-sector workers, and Social Security is intended to be only part of retirement income.
If you want more detail on employer-based choices and how they affect planning, consider reading Young Workers as Homebuyers and Retirement Planning for related topics and decision points.
I’ll never retire, I’ll delay retirement, or I’ll work part-time.
Some plan to work longer and reduce savings needs, but life changes such as health issues or job loss can force earlier exits from the workforce. Surveys indicate a significant share of people left work sooner than expected for these reasons.
The bottom line: planning and regular saving are key to a comfortable retirement, even when progress starts with small steps. If you want personalized help to review your options, talk to an agent.
Frequently Asked Questions
How much should I save for retirement?
A common guideline is to aim for about 70% of your pre-retirement income, but your personal target depends on your expected expenses, health, and lifestyle in retirement.
Is it too late to start saving at age 50?
It’s not too late; contributions and catch-up options can still grow substantially and improve your retirement outlook.
What if my employer doesn't offer a retirement plan?
You can use individual retirement accounts or other taxable investment accounts to save for retirement outside of an employer plan.