By Craig Erwin, Ph.D.
Photo by Malcoln Oliviera on Pexels.com
Can you accumulate too much for retirement? Journalists like to warn of the perils of accumulating too much. But most of us will have the opposite problem. Besides, you must make so many assumptions and there are so many unknowns; how can you ever be sure how much money you’ll need and how long it will last?
One of my friends works for a company that just conducted layoffs. Some of his closest colleagues lost their jobs. Their retirement assumptions and calculations may be thrown out the window. Some may be forced to spend retirement savings to survive until they find work. Some may be unable to find a job and may be forced to retire years before they planned. Others may be forced to retire years later than planned, having too little saved; maybe even at a sharply reduced standard of living. But there are plenty of people likely to be even worse off because almost 25% of adults have neither a pension nor savings for retirement, according to the Federal Reserve.
There are far too many things that can wreck your plans; divorce, the death of a spouse, serious medical problems, pregnancies, layoffs, downsizing, economic downturns – all of these and more. So, save as much as you can and then save some more. You don’t know what lies ahead.
Are you confident that you are saving enough? Have you been tempted to cut back?
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