5 Signs You’re at Risk of Never Being Able To Retire

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The dream of retirement is something people of all ages look forward to. You’ll trade in your long work hours and commute for years of relaxation on your own schedule. But to retire for good, you’ll need to prepare financially. A lack of savings and Social Security benefits can hold you back from the retirement you deserve.

Here are a few signs your retirement might be in trouble.

You Don’t Have Any Retirement Savings

Are you living paycheck to paycheck, with nothing going toward retirement investments or an employer-sponsored retirement plan? That’s a big red flag. Not having any retirement savings means you may need to rely on income from a job to sustain yourself in your later years. You might continue to work much longer than you’d like, even if you’d prefer a retiree’s schedule.

If this is you, try setting aside a small amount every paycheck. Even if it’s just $25 or $50, the savings can add up. And if you invest it, there’s the potential for gains over the long term.

You Don’t Have Any Idea What Your Retirement Will Cost

There are a lot of numbers thrown around concerning retirement. You might hear financial advisors say you need at least $1 million in savings to retire comfortably or at least 80% of your regular paycheck for 10-15 years. But those are just numbers, not a customized assessment. You might live frugally enough to get by on 40% of your regular income or even less.

Take some time to consider what your expenses will be in retirement. If you have any assets, such as a paid-off mortgage, you might be better off than you think. Make a realistic budget of what you think you’ll spend to figure out how much savings you need. Also, consider your potential income sources to see what kind of differential you’re left with.  

You Lack Work Credits for Social Security

Social Security provides monthly retirement benefits to people who earn at least 40 credits before they retire. You get a credit by making a certain amount of income each year, up to a maximum of four credits annually. In 2025, the earnings threshold per credit is $1,810, but it may change from one year to another. 

If you’re short of the full 40 credits, you may not qualify for Social Security benefits before your planned retirement age. If it’s just a handful of credits, working an extra year or so may qualify you for a monthly check. You can check your current benefit status on the Social Security Administration’s website to see where you stand.

You Have a Lot of Debt

Do your mortgage and credit card payments exceed your expected retirement benefits? That’s a problem, especially if you’re close to retiring. It can take years to whittle down a high-cost mortgage and credit cards. And if you’re paying off other debts — like a car loan — it just adds to the problem.

Try to work out a plan to pay off most debts before you retire. You might consider working with a financial advisor to devise a debt payoff strategy you’ll stick with. 

You Have No Healthcare Budget

Once you turn 65, you may be eligible for Medicare. But the most basic plan — Medicare Part A — only covers hospital stays, skilled nursing facilities and hospice care. You’ll need to upgrade to Medicare Part B, C or D to access other benefits like prescription coverage. The more extensive Medicare plans require a premium payment, and you’re still on the hook for co-pays.

Try to figure the cost of Medicare or other health insurance into your retirement costs. If you’re short on funds, you may need to escalate your savings before retiring.

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