Many Americans Have No Retirement Savings Goals: Here’s How To Set Yours

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Many Americans prioritize saving for retirement early and consistently, but this is not true for all Americans. 

When GOBankingRates surveyed 1,395 Americans on the topic of retirement savings, 31% of respondents said they did not have a retirement savings goal. Further survey findings indicated that of the age ranges polled, 42% of respondents who said they did not have a retirement savings goal were between ages 55 and 64. This age range is particularly concerning as it is close enough to retirement — and already in the age bracket where one can enter an early retirement.

Being without a retirement savings goal makes it difficult to properly enjoy your retirement years, but it is possible to determine your own goal and get your retirement savings on track.

GOBankingRates spoke to Jennifer Aube, CFP and vice president at Wironen Aube Wealth Management, to learn more about how to set a retirement savings goal.

Why Do So Many Americans Lack This Savings Goal?

Before we can dig into how to set a savings goal for retirement, there’s an important question to address regarding why such a large percentage of Americans are not on track for this goal. 

Dozens of answers exist. They range from procrastinating since the concept of retirement seems far away to having a difficult relationship with their own personal finances. Some Americans might have started to save and stopped, feeling overwhelmed or intimidated by the idea of catching up with the oft-cited figure that $1 million is required for a comfortable retirement. 

Aube refers to the phrase “what is not measured is not managed” when answering this question. 

“Many Americans do not have a retirement savings goal because it has not been something that has been put onto their goal list to measure,” Aube said. “Therefore, it is not accomplished.”

Getting Financially Prepared for Retirement 

Those who want to set and reach their retirement savings goal — which should be everyone — can prepare now by taking these key steps.

Start an Emergency Fund

How often do you hear stories in the news about people who dip into their 401(k) to pay for unexpected expenses? Typically, this action is taken because they don’t have an emergency fund to cover unexpected costs. 

Having no emergency fund, Aube said, is one of the reasons many Americans are behind with their retirement savings. Without emergency funds, many have no choice but to dip into their retirement savings. Not only does this incur unnecessary penalties and taxes, but it depletes the savings over time, which Aube said puts individuals behind with their savings goal.

The takeaway? Before you can start aggressively saving for retirement, first set aside a fully funded emergency fund. This may include three months or more of expenses.

Meet With a Financial Planner

After you establish your emergency fund, the next step to setting a retirement savings goal requires meeting with a financial planner. 

Aube said a financial planner can assist you in assessing the lifestyle you live now as well as the lifestyle you want to live in retirement. Other items to address will include your future Social Security and/or pension benefits, retirement plan options available through your employer, your personal retirement accounts, your own longevity and your own personal goals and preferences.

Once these assessments have been made, Aube said, the financial advisor will be able to help you implement a financial plan. Within this plan, you’ll better understand how much you need to save for your near-term, mid-term and long-term goals including retirement. 

Your advisor also will advise you on the following areas which impact your retirement savings:

• The best type of account to use
• How much, and how often, to invest
• Which investments are suitable for you

“Retirement savings is part of a comprehensive financial plan,” Aube said. “It requires intentional action to achieve this important goal.”

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