Retirement Worries: Are You Saving Enough?

Retirement planning is a big deal. It's not just about having money saved up. It's about making sure you can live the way you want to after you stop working. Many people struggle with this. In fact, less than half of Americans are on track to keep their current lifestyle in retirement. Different generations face different challenges. Surprisingly, older Gen Z workers (ages 24-28) are doing the best. Nearly half of them are saving enough to maintain their lifestyle later in life. But as age increases, the percentage drops. Only 40% of Baby Boomers are on track. However, many Baby Boomers own homes, which can be a safety net. To stay on track, you need to think about a few things. First, how much have you saved already? Second, how much can you save in the future? Third, what will your expenses be in retirement? Experts suggest saving 10 to 12 times your final salary. This should replace about 70%-80% of your pre-retirement living costs.Younger people should save consistently. This helps them benefit from compounding. Those close to retirement but lacking savings might consider catch-up contributions. Also, if your employer offers a match on your retirement contributions, take advantage of it. It's like getting free money. Managing expenses is crucial in retirement. Many retirees need to make lifestyle changes. This could mean moving to a smaller home or a cheaper area. Cutting unnecessary expenses can also help. It's important to track your spending now to plan for the future. Many older adults have little or no retirement savings. This makes it important to look into benefits programs. These can help cover medical, housing, and food costs. Some retirees even work part-time to boost their savings. In 2024, about 1 in 5 people over 65 were working or looking for work.