The reasons why people don't save enough for retirement are as varied as the people who give them. But these three are some of the most common. Learn how you can avoid these retirement savings excuses.
Excuse #1: My employer doesn't offer a retirement plan. Approximately half of all American workers don't participate in a workplace retirement plan, but that's no reason to delay retirement savings.
The fix: If you can't make contributions through your employer, open an individual retirement account (IRA) and aim to deposit 15 percent of your paycheck each month. You can contribute up to $5,500 (or $6,500 if you're older than 50) each year.
Excuse #2: I have too many other financial obligations. If most of your paycheck goes to regular expenses—like a mortgage, student loan, credit card debt and a car payment—saving for retirement may not feel like a priority.
The fix: Think of retirement contributions as another monthly bill. Automatic deposits from your paycheck mean you won't forget to make contributions, and you likely won't miss the money when it doesn't hit your checking account.
Excuse #3: I can just live on Social Security. To live comfortably in retirement, you'll need around 70 to 80 percent of your pre-retirement income. But the average monthly payout from Social Security is less than $1,200—barely enough to live on.
The fix: You can count on Social Security to cover some of your retirement expenses—just not all of them. Make sure you have other retirement savings vehicles in place, such as a pension, 401(k), IRA or investment account.
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