5 Obstacles Hold Americans Back From Saving Enough for Retirement

• Americans say their retirement savings suffer from five main factors.
• They say market volatility, unexpected expenses, and monthly expenses keep them from saving.
• Debt also keeps Americans from saving more, with education and credit card debt being the most common.
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Americans want to save more for retirement after the pandemic. However, several factors hold them back.

From the high cost of living to student loans, Americans struggle with several factors as they try to save more and invest more for retirement. This is the result of a Schwab survey conducted in April 2021 of 1,000 Americans between the ages of 25 and 70 who have already started saving for retirement.

The survey data showed that while Americans want to save more, five factors are holding them back: market volatility, cost of living, unexpected expenses, credit card debt, and student loan debt. But these factors can largely be overcome.

Market volatility prevents 32% from saving for retirement

The stock market goes up and down and that can be nerve-wracking. But it doesn’t have to be like that.

Paying too much attention to the market can be a bad thing and make you think too much about short-term losses and gains rather than long-term growth.

If you stay on track with your investments, you can make long-term returns. Experts advise making it difficult to keep checking your account, e.g.

Invest in apps
from your phone. Ignoring the daily turns in the stock market could help you as an investor feel more confident.

Unexpected expenses prevent 29% from saving for retirement

Many people find that unexpected expenses keep popping up, but there are ways to keep them from being such a burden.

You can’t stop them, but you can be prepared. An emergency fund or savings account that consists of three to six months of spending can help you manage the unexpected. If something happens, it is possible to reach into the fund to pay the bill so you can stay afloat and keep working towards your goals.

27% of Americans struggle to keep up with monthly expenses

Over a quarter of Americans say spending on a daily basis prevents them from saving more. Months of a global pandemic, along with the rising cost of living, worry many Americans every month. And the high household debts are putting a lot of savings on hold in favor of repayment.

That being said, many Americans struggle with overspending, and that is something that can be controlled. Establishing a budget and starting living below your means could help you manage your financial life.

Creating a budget can be a smart move for anyone, regardless of your income. Start by listing expenses and income, and from there, see where your expenses are flowing each month. Saving and investing can become much easier when you know where you are overspending.

Paying back student loans and credit card debt is holding back much more

About 21% of Americans say spending on education prevents them from saving, including things like student loans. And 20% say credit card debt is keeping them from saving.

Paying off credit card and student loan debts is not always quick. But consolidating debt, refinancing home student loans at a lower interest rate, and asking for lower interest rates from lenders could help you kickstart your payoff journey.

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