Everybody knows they should save more for retirement. But if it were easy, we’d all be doing it.
Unfortunately, life often gets in the way of our best intentions. And Americans agree that four obstacles are particularly difficult to overcome when building a nest egg, according to the 2021 Lifetime Income Survey from financial services firm TIAA. The organization surveyed 1,000 people to come to its conclusions.
Following are the biggest retirement saving roadblocks.
Have other savings priorities
Percentage citing this roadblock: 22%
If your heart is set on buying a dream home or a shiny new car, the goal of saving for retirement is likely to end up on the back burner. While that might not be the wisest decision financially, it’s certainly understandable.
However, it might be wiser to slightly delay such purchases if it allows you to also save at least a little bit for retirement. If you need help to better balance your saving priorities, enroll in Money Talks News’ retirement course, The Only Retirement Guide You’ll Ever Need.
Money Talks News founder Stacy Johnson is your guide for the 14-week course, which can teach you everything from Social Security secrets to how to time your retirement.
Want to ensure access to money in case of emergency
Percentage citing this roadblock: 22%
There is seemingly no end to the sudden, expected expenses that creep into our daily lives:
- The jalopy breaks down.
- The crown on your molar crumbles.
- Your daughter needs a new dress for homecoming.
Shrewd savers build up an emergency fund of cash they can tap into when such expenses arise. But saving for this fund may not leave enough leftover cash to save for retirement.
The good news is that once you have built a solid stash of cash, most emergencies that arise will only require you to dip into a portion of your emergency fund rather than depleting the entire savings. So, you will just need to replenish the amount you spend.
In short, once you have fully funded your emergency stash, the heavy lifting is over. That should free up more cash to save for retirement.
For more, check out “9 Tips for Starting an Emergency Fund Today.”
Cannot afford to save more
Percentage citing this roadblock: 42%
If monthly bills have painted you into a financial corner, there really might not be any extra cash to devote to your retirement kitty. That makes saving especially difficult. However, there are still ways out of this trap.
One of the best is to take on a side hustle. Working a little harder now can make life much easier further down the road. For more, read:
Have debt that needs to be paid off
Percentage citing this roadblock: 44%
Debt is the biggest killer of potential wealth on the planet. Every dollar earmarked to pay off debt is money that could have been used to build a rich retirement.
If you want to get wealthy, you must avoid most forms of debt. For tips on escaping the nightmare of debt, check out:
And if your debts are too large to tackle with a DIY approach, stop by the Solutions Center and search for free, expert help with your debts.
Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.
