Don’t give up on your dreams of a secure retirement because of this financial challenge today.
Throughout the U.S., many people have far too little retirement savings to support themselves after they stop getting paychecks. There are some common reasons why so many workers are unable to save for their later years. In fact, more than 9 in 10 people responding to a recent Goldman Sachs survey identified the same key issue that’s interfering with their efforts to invest for their future.
According to Goldman Sachs, 93.3% of current workers indicate that too many financial expenses stand in the way of retirement savings. This was the top-cited reason for a struggle to save, above financial hardships such as home repairs, credit card debt, or paying down existing loans.
Having too many pressing financial expenses at the moment can push retirement savings off of your priority list — especially if you’re many years away from leaving the working world behind. Unfortunately, the sad reality is that you’re going to need to have a nest egg to supplement Social Security, which can only replace about 40% of pre-retirement income — rather than single-handedly providing the 80% to 90% of pre-retirement funds that you’ll need to make ends meet.
And while you may feel like you have plenty of time to save for retirement in the future, the longer you put off investing, the harder it will be to actually acquire the requisite nest egg. That’s because you lose out on the opportunity to have your invested funds earning returns that can then be reinvested to earn more money for you without any effort on your part.