4 out of 10 workers share this depressing retirement perspective – Motley's Fool

According to a recent survey by financial services firm LendEDU, about 20% of Americans say that saving for retirement is their most important financial goal. This is the good news. The bad news is that too many people think this goal is out of reach.

According to the survey, about four in ten workers admitted that they did not think they were able to save enough for their retirement, making retirement the most "unattainable" financial goal. reported by the participants in the survey.

Saving for retirement is difficult, but it's not impossible, even if you're falling behind. By thinking of it as an unachievable goal, it is all the more likely that you will stop even before you have begun. Sometimes, however, splitting an important goal into smaller, more manageable chunks is the easiest way to make your retirement dreams come true.

Little steps on the road to retirement

Forty-five percent of baby boomers have no savings for retirement, according to a recent report from the Insured Retirement Institute. When you are late on your savings, it is tempting to think that it is not worth saving anything while it will not be enough to last until retirement.

However, even if you probably will not be able to save $ 1 million in a few years, that does not mean you can not set goals and save money. Something for retirement. The first step is to get a clear picture of what retirement will actually cost.

To determine how much you will need each year in retirement, look at what your current annual expenses look like. Most retirees spend between 70% and 80% of their current income. If you spend $ 45,000 a year, that means you may need $ 32,000 to $ 36,000 a year at retirement. Of course, these numbers are not fixed in stone and many factors can upset your plans. But it is always good to have a general estimate of what you can expect to spend in retirement.

Then determine how much you will need to save based on the age of retirement. To do this, the easiest and most accurate way is to use a retirement calculator. However, it is a good idea to spend your numbers through a few different calculators, as each uses slightly different information and may give different answers. Some will consider social security benefits, for example, while others will take into account the costs of inflation. Most calculators will also give you an idea of ​​how much you should save each month to reach your retirement goal.

Once you have in mind this goal of monthly savings, ask yourself if it is achievable. If you are late for the backup game, you may need to save hundreds or even thousands of dollars a month to accumulate enough for a comfortable retirement. Sometimes it is enough to review your budget and reallocate money to retirement, but in other cases you will have to take more drastic action.

What to do when reducing costs is not enough

So what are you supposed to do when you find out exactly how much you should save for retirement and that you just do not have as much money to spend? Sometimes, just cutting your coffee or jumping to take away is not enough to achieve your retirement goals, in which case you have a few options.

First, ask yourself if you are ready and able to make larger sacrifices, such as reducing the size of your home. This is 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 the interview), this could bring in retirement.

Another option is to find ways to supplement your income. You do not need to leave your career to become a doctor, a lawyer or a rocket specialist, but choosing a dog for a walk, photographing a wedding or creating a website can potentially bring you a few hundred dollars more per month. Put all this money for retirement and you will be closer to achieving your goals.

If all else fails, you may need to reconsider your retirement options. You may want to retire at age 65, for example, but working for only four or five more years can increase your pension fund by tens, if not hundreds of thousands of dollars. Waiting to claim social security benefits can also lead to bigger checks every month, which can go a long way when money is tight.

The last thing you want to do when you're late on your retirement savings is to give up and do nothing. In the absence of any personal savings you can count on, you will probably only be able to rely on social security. When the average check rises to $ 1,400 a month (or $ 16,800 a year), it can be difficult.

Regardless of your financial situation or the amount of your retirement savings, you are the only way to guarantee yourself habit achieve your retirement goals, it's do nothing. Saving for the future is not easy, but making sacrifices now will ensure a happier and more comfortable retirement.