4 out of 10 Workers Share this Depressive Pension Outlook – Motley Fool

Approximately 20% of Americans say savings are their primary economic goal, according to a recent Financial Services Company survey LendEDU. That's the good news. The bad news is that for many people this goal is out of reach.

Approximately four out of ten workers admitted that they didn't think they could ever save enough to retire, the survey found, and made retirement the most "unattainable" financial targets reported by survey participants.

Retirement storage is tough, but it is not impossible – even if you fall behind. By thinking of it as an unattainable goal, it is all the more likely that you will quit before you get started. Sometimes, though, breaking a big goal into smaller, more manageable pieces is the easiest way to make your dream dreams come true.

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Baby steps on his way to retirement

Fifty percent of baby boomers do not have any pension savings at all, according to a recent report from the Insured Pension Fund. When you are back on your savings, it is tempting to think that it is not worth breaking with something when it will not be enough to last through retirement.

But while you probably won't be able to save $ 1[ads1] million in a few short years, it doesn't mean you can't set goals and save something for retirement. The first step is to get a clear picture of which pension will cost realistically.

To find out how much you need each year in retirement, take a look at what your current annual expenses look like. Most retirees will end up spending about 70% to 80% of their current income – so if you spend $ 45,000 a year now, you might need between $ 32,000 and $ 36,000 a year in retirement. Of course, these numbers are not set in stone, and there are a number of factors that can throw off your plans. But it is still good to have a general estimate of how much you can expect to spend in retirement.

Then find out how much you need to save at retirement age. The easiest and most accurate way to do this is to use a pension calculator. It's a good idea to run your numbers through a few different calculators, but each uses slightly different information and may result in different answers. For example, some will contribute to social benefits, and others will count on inflation costs. Most calculators will also give you an idea of ​​how much you should save each month to reach your retirement goals.

When you have the monthly savings target in mind, ask yourself if that is possible. If you are late for the storage game, you may need to save hundreds or thousands of dollars per month to accumulate enough to retire comfortably. Sometimes you just have to go through your budget and redistribute money against retirement, but at other times you need to take more drastic measures.

What to do when you reduce costs, is not enough

So what are you going to do? When you find out exactly how much to save for retirement and you just don't have that much money to save? Sometimes just cutting out latte or jumping on takeout, it is not enough to reach your retirement goals, in which case you have some opportunities.

First, consider whether you are willing and able to make more important victims, such as downsizing your home. It's a big move, but if you are able to save hundreds of dollars a month on your mortgage or rent (and potentially save money on property taxes and maintenance as well), it might be worthwhile to get your retirement.

Finding Paths Supplementing your income is another option. You don't have to end your career and become a doctor, lawyer, or rocket scientist, but you can pick up a few extra hundred dollars a month, but pick up a hustle of youths, photograph weddings, or build websites. Put all your money into retirement and you get closer to your goals.

If everything else fails, you may need to consider your retirement options. You may have a goal of retiring at the age of 65, for example, but working only four or five extra years can increase your pension fund by tens or even hundreds of thousands of dollars. Waiting to claim social benefits can also result in larger checks every month, which can go a long way when money is tight.

The last thing you want to do when you are behind your retirement savings is to give up and do nothing. Without any personal savings to fall back on, you'll likely be left dependent on social security to make ends meet – and when the average control amounts to just $ 1,400 per month (or $ 16,800 per year), it can prove challenging. 19659002] No matter what your financial situation looks like or how much you have (or lacks) in pension savings, the only way to guarantee you not now your retirement goals is to do nothing. Storage for the future is not easy, but making victims now will ensure that you will enjoy a much happier and more comfortable pension.