3 Signs That Reveal Whether You Are Saving For Retirement

With the average American spending 20 years in retirement, it’s time to think about saving for that time if you haven’t given it thought just yet.

In fact, most smart people actually begin to save for their retirement at the beginning of their careers. Make no mistake: the choices that you make now will determine how comfortable you are then.

That said, here are 3 signs that reveal whether you are saving enough for retirement or not:

#1: You haven’t started saving

If you think that you can start saving when you are 50 years old, you’re sorely mistaken. The truth is that the earlier you begin to save, the more money you’ll have when you retire. In fact, Fidelity calculates that amount to be 8 times your final salary.

If you’re scared of this, then start slowly and then increase the amounts as you age from 35 to 45 and finally at 55 years of age. The compound interest along with your contributions can help you net a decent sum.

#2: Paying out-of-pocket medical expenses is difficult

When you are young and healthy, the amount that you will need to pay for your medical expenses might be less. However, as you age, that amount can increase substantially. So if you are finding it difficult to pay for it now, imagine how difficult it will be do this when you are older.

According to a report, an aged couple at 65 needs at least $225000 for their medical expenses in retirement.

So, start saving now!

#3: You have Credit Card Debt

It doesn’t matter whether you are getting out of debt or maxing out your credit cards. This is still distracting you from saving up for retirement. So, it’s time to look at your spending habits and try and live within your means. Don’t forget to create a plan to pay your debt off while also looking at how you can save for retirement too.