10 Key Signs You’re Not Saving Enough for Retirement

Retirement might be years or even decades away, but it’s never too soon to check in on your savings plan (or start one, if you haven’t).

Setting aside money allows you to collect interest, helping maximize your investments. Even if you’re already saving money for retirement, you still need to ensure you’re stashing the right amount of cash.

Read more about how to know if you’re properly planning for retirement.

If you don’t know how much of your income you’re saving for retirement, that’s a huge red flag.

You should know your savings rate — which is typically calculated by dividing the amount in your savings by your annual income — and be trying to increase it every year. The lower your savings rate, the less money you’ll have to last you through your golden years and the less you’ll have to afford all of the necessities you’ve grown accustomed to.

For example, experts at financial services firm TIAA recommend saving 10% to 15% of your income for retirement. If you’re younger, you may be able to get away with less, but as you near retirement, this percentage should increase to further grow your nest egg.

Again, the general rule of thumb is you should be saving around 15% of your income for retirement.

But if you’re having trouble saving more of your income, look at your spending habits and see if you need to cut back. You might be spending too much of your take-home pay on things that can add up, such as going out to lunch multiple times weekly.

Once you get your paycheck, put 15% — or 10%, if 15% is too much — into your retirement savings account. Then, divide the rest of your take-home pay between an emergency fund and other future expenses.

You might have a few medical bills now, but you’ll likely have more as you get older. So, if you’re having a hard time finding the money to pay for your current medical bills, you’ll probably have an even harder time paying medical expenses when you enter retirement.

Start saving money now. You don’t want to have to worry about not being able to pay hospital bills in the unfortunate event that you get sick or injured during retirement.

Whether you’re currently living off your credit cards or trying to get out of credit card debt, there’s a good chance you’re not focused on retirement. Examine your spending habits, and create a budget to start living within your means. Then, devise a plan to start paying off debt and saving for retirement.

In some cases, it might make sense to focus on saving money for retirement first. Or, the opposite might be true: pay off debt, and then start saving for retirement. If you’re unsure about where to start, consult a financial planner.

If you don’t know how much you’ll need to maintain your lifestyle in retirement, you’re most likely not saving enough.

You might not know how much you should save down to the last penny, but you should have a ballpark estimate. Not only do you need enough savings to pay for your living expenses, travel and everything else you’re planning to do during retirement, but you’ll also need to account for inflation.

If your company offers to match your 401(k) contributions, contribute the maximum. It’s a quick and easy way to grow your retirement fund and essentially earn free money.

Take advantage of this program if your employer offers it. Otherwise, you’ll regret passing up this opportunity if you find yourself struggling to pay for an expense during retirement.

Sure, Social Security can help you pay for expenses in retirement, but you shouldn’t rely solely on this fund. For one thing, the amount of money you receive isn’t that much.

As they say, don’t put all your eggs in one basket. Whether it’s a 401(k) or an IRA, make sure you have another retirement savings plan in addition to Social Security.

It doesn’t matter how much money you have put aside in your retirement savings account if you’ve already taken money out of it. Although this withdrawal might have helped you in the short term, it can be detrimental to your long-term financial health in retirement. You’ll need to develop an aggressive savings strategy to get caught up again.

If you don’t currently have enough money saved to last you a few months in case of an emergency, such as losing your job, how do you think you’ll survive 20 or so years in retirement?

Rather than becoming discouraged, use this realization as a wake-up call to get your financial priorities in order so you can start focusing on your future.

Saving for retirement is a major undertaking, so seeking counsel from a financial advisor is wise. He or she can review your portfolio to ensure it’s on target to reach your goals, help you plan for inflation and make any necessary adjustments based on your age and desired lifestyle. You probably don’t need to meet with a professional regularly, but checking in once or twice a year will ensure you’re on the right track.

If all 10 of these signs apply to you, don’t freak out — just start planning and saving today. Saving sooner rather than later is preferred, but it’s better to save later than never.