US News and World Report had a little piece where they discussed some good New Year’s resolutions related to retirement and I thought that I’d put each of them through their paces. The ninth retirement resolution was to set a retirement savings goal.
Only 42 percent of workers have actually calculated how much they need to save for a comfortable retirement, according to EBRI. And 41 percent of those who did the calculation created their own estimate or guessed. It’s a good idea to sit down with a financial adviser and calculate exactly how much you will need to cover your expected retirement expenses or use an online calculator or retirement worksheet.
It’s always important to have a plan before you do anything and your retirement is no different. If you don’t know where you need to be and how much you’ll need to retire, it’s very difficult to be comfortable with how much you’re saving. Are you saving too little or even too much? Life is about balancing the enjoyment of your labor both now and into the future so you don’t want to put too much away into your nest egg, it’s almost as bad as not putting enough.
Now, it’s staggering that only 42% sat down and calculated how much they’ll need and that of those, 41% only guessed. Now, if you’re young and just entering the working world, it’s perfectly alright for you not to be focused on retirement outside of the basics. However, if you’re less than twenty years from retirement, it’s crucial that you sit down, do the math, and give yourself some confidence that your retirement plan is on track.
Source: US News and World Report