Many individuals are looking toward the future when it comes to financial strategies, as this may better secure a happy retirement. However, in order to accomplish that goal, some may need to make changes about how they live now.
Approximately 85 percent of Americans noted that they will need to cut some expenses out of their lives now in order to properly conserve money for later in life, according to a report conducted by GfK for TheStreet. A total of 53 percent noted that they are concerned about their ability to properly save for retirement. Another 38 percent felt that they need to do better with their current retirement savings level.
Some people are trying to determine how to balance saving for the future with covering expenses for school. The report noted that close to one-third opted to put money away for their child’s schooling instead of putting away for their own financial future. Nearly 30 percent felt a lack of confidence about having the right funds to save for their own education.
“A lot has been written about retirement and how people should be saving more to live comfortably in their old age,” said Marilen Cawad, managing editor for TheStreet. “But what people are still grappling with is whether there is such a thing as going overboard with retirement savings. It’s a tough balance to strike when you want to enjoy your life now, be able to retire comfortably, and still have funds for things like your child’s education or unexpected medical bills.”
Older Americans may reach retirement comfortably
While a sizable portion of adults may be worried about their ability to retire the way they hoped, there may be some older individuals who are on-track to achieve this. According to a report from Del Webb, close to 60 percent of those in the baby boomer generation think they will be able to retire on time.
“For the first time in what may seem like a lifetime, boomers are transitioning to a new stage in their lives that is filled with zest and personal discovery,” said Fred Ehle, vice president of brand marketing for Del Webb.
These baby boomers plan to stop working in their normal capacity at age 65, the report added. This would be two years earlier than the median age recorded in 2010.