Busting Retirement Number Myths: Are You Saving Too Much or Too Little?

Hey there, retirement planner!

If you're a woman planning for retirement (especially if you're under 55 and working in the corporate world), you've probably found yourself wondering, "Am I saving enough?" or maybe even, "Am I saving too much and missing out on life now?"

Trust me, I get it! With all the conflicting advice out there, it's super easy to feel overwhelmed by those big, scary retirement numbers. As someone who's spent years in actuarial science and retirement planning, I want to help clear the confusion by tackling some common retirement myths and helping you find that sweet spot between preparing for tomorrow and living your best life today.

Misconception #1: You Need $1 Million (or More) to Retire

You've definitely heard this magic number thrown around, right? "$1 million for a comfortable retirement!" But here's the truth that financial headlines don't always share: your ideal retirement number depends on your unique lifestyle, expenses, and goals.

If you plan to downsize, live modestly, or relocate to a lower-cost area (maybe even to a beautiful island like Barbados!), you may need much less than that intimidating million. On the flip side, if extensive travel and luxury experiences are on your bucket list, you might need more.

The key isn't focusing on a random number someone else created – it's calculating your expected expenses and building a flexible plan that reflects your vision of retirement. This isn't about restricting your dreams; it's about creating clarity so you can retire with confidence!

Misconception #2: Saving More is Always Better

While consistent saving is absolutely crucial (and something I'm passionate about teaching), over-saving can sometimes mean missing out on life experiences now. It's all about finding balance – something I emphasize with all my Retire Happy Club members.

If saving aggressively means constantly saying no to things that bring you joy—like travel, creative hobbies (I personally love sewing and baking!), or quality time with loved ones—it may be time to reassess your approach.

Financial security is important, but so is living a life that's fulfilling today. Remember, retirement planning isn't about deprivation – it's about intentional choices that align with both your current and future happiness.

Misconception #3: You'll Spend Much Less in Retirement

Many people automatically assume their expenses will drop significantly in retirement. While some costs like commuting or work attire may decrease, other expenses like healthcare, travel, or home maintenance could actually rise.

As someone who helps women create flexible, sustainable financial plans (not restrictive budgets!), I always recommend taking a realistic look at what you might spend in retirement, rather than assuming a blanket decrease in expenses.

Think about it: when you have more free time, you might want to travel more, pursue new hobbies, or spend more on entertainment. These lifestyle changes matter when planning your retirement savings strategy!

Misconception #4: Social Security Will Cover Most of Your Needs

Social Security is designed to supplement your retirement income, not replace it entirely. For most folks, it covers about 30-40% of pre-retirement income. Relying solely on Social Security can leave a significant gap in your financial plan.

This is why I'm so passionate about helping women build multiple income streams – through savings, investments, and even potential part-time work or passive income sources during retirement. Having diverse income options gives you both security and flexibility in your golden years.

Misconception #5: You Can Always Work Longer if Needed

Many women plan to "catch up" on retirement savings by working longer, but life doesn't always cooperate with our plans. Health issues, family responsibilities, or job market changes can disrupt this strategy faster than you might expect.

While working longer can certainly be an option (and many of my clients actually choose to work part-time in retirement because they enjoy it!), it's wise to have a backup plan and save consistently over time. This gives you the freedom to choose whether you want to work, rather than feeling forced to for financial reasons.

Finding Your Balance

So how do you know if you're saving enough without sacrificing the life you want today? Start by estimating your retirement expenses based on your personal vision, not someone else's idea of what retirement should look like.

Consider working with a retirement coach (like yours truly!) who understands the unique challenges women face in planning for retirement. Also, build flexibility into your plan—life is wonderfully unpredictable, and your financial strategy should be adaptable enough to embrace those changes.

Remember, retirement planning isn't just about hitting a magical number—it's about designing a future that aligns with your values and dreams while allowing you to live meaningfully today. You absolutely deserve a retirement that's secure and a life that's joyful right now. Finding your balance is the key to making both happen!

Need Help Getting Clarity?

If you're feeling uncertain about your retirement number, let's simplify it together! My 12-week 1:1 coaching program helps women just like you create a clear roadmap to retirement confidence - find out if you are a good fit. Or, if you prefer a more self-guided approach, check out my Ready Set Retire .

You're not alone in this journey, and with the right guidance, retirement planning doesn't have to be overwhelming or restrictive. It can actually be empowering and – dare I say it – fun!

Let's make retirement planning feel a little lighter and life today a little brighter.

— Robyn