Most Americans have not saved enough to retire at age 65. They suspect this. It bothers them a little, but not enough to (1) use a calculator to find out if they have saved enough, and (2) save more.
It is not enough to suspect that you have a problem. You should find out.
You can do this easily with the retirement calculator that is offered free of charge by the AARP. Step by step, it takes you through the numbers. By the end of the process, you will have some idea.
If you find out that you have not saved enough, what will you do? Will you increase your savings rate? But what will you invest in?
It will do you no good to put your money in the bank. That pays no interest.
If you put it in the stock market, it may go nowhere. Discounting for price inflation, the S&P 500 today is below where it was at the top in the year 2000. And the dividends it paid — hardly any — were used to pay for most index funds’ fees.
What about bonds? If we get into price inflation, long-term rates will rise and bonds will fall. Your only hope is a recession. But you could lose your job in a recession.
So, do you still want to find out if you will be able to retire? You should. Why? You will be more motivated to make plans not to retire.
Click this: calcAARP.