A third of workers cannot answer a fundamental retirement question: how much do they have saved for retirement?
Although a simple question, this is an easy mistake to make, especially if you have multiple retirement accounts. Also, if you diligently save every month, it can seem like a hassle to check your savings as often as you should.
Per The Motley Fool:
Roughly a third (32%) of workers say they can’t even estimate how much they currently have saved for retirement, a recent report from Wells Fargo revealed. This is an easy mistake to make, especially if you have multiple retirement accounts. Also, if you’re diligently saving a little bit every month, determined to reach your long-term goal, it’s not hard to forget to stop and check in on your savings every so often.
However, if you don’t keep an eye on how much you’ve already saved, it can be difficult to tell whether you’re on track. Saving for retirement isn’t a “set-it-and-forget-it” type of situation, and you may need to make adjustments every so often. If you don’t know how much you have in savings, you risk reaching retirement age with much less than you expected.
It’s also important to reassess your goals every few years to make sure you’re still aiming for the right target. If certain factors — like your desired retirement age or the amount you expect to spend each year in retirement — have changed, it will affect how much you should be saving. Knowing how much you already have stashed away can help you determine whether your new goal is attainable or if you’ll need to readjust your expectations.
Finally, it’s especially important to know roughly how much you have saved as you near retirement age. When you’re just a few short years away from retirement, it’s essentially your last chance to boost your savings. By being aware of whether you’re on track to reach your goal, you can determine whether to keep chugging along at your current pace or start supercharging your savings.