Is Your Retirement Nest Egg Enough?

retirement nest egg

How much do you think you need for retirement? $1 million? Now, the amount you need to save is more complex than one large sum.

Let’s face it: the cost of living is high. If you struggled to make ends meet throughout your life, you’ll also struggle in retirement.

Even if you had a good job, such as a dentist, saving $1 million is impossible.

But rather than saving one lump sum of money, determine the amount you need to save by your cost of living and other expenses.

So is your retirement nest egg enough? Continue reading for additional retirement savings advice.

Is Your Retirement Nest Egg Enough?

The recommended retirement savings amount has always been $1 million. But experts are even saying this amount is too low.

Depending on the account your funds are in, your amount is adjusted for inflation.

This causes a major decrease in your overall savings. But even if you only have $20,000 or $40,000, these numbers are better compared to current figures.

A common mistake retirees make is relying on social security.

The average person only receives $17,000 in social security. Six out of ten working-class people save for retirement, and one in ten working-class people have a set retirement financial plan.

The issue isn’t how much you save — it’s how you save, creating a strong financial retirement plan, and actually saving opposed to relying on social security.

Don’t worry — it’s never too late to prepare for retirement. Here’s some information to educate you on retirement savings.

Do You Make Enough Now?

The biggest reason why people don’t save for retirement is they don’t make enough now.

The average worker makes around $46,000 but the average 401k will generate $18,000 for this salary. So many workers in this salary range don’t have a reason to save.

Workers whose salaries are at the poverty line, such as $20,000, don’t have enough money left over to invest in a retirement plan.

Even if their employers offered a 401k, they won’t be able to save close to what they need for retirement. In addition, the amount they contributed to social security won’t cover them when they retire.

Debt is another major factor. In the face of student loan debt, many adults prioritize paying off of their debt rather than saving for retirement.

42% of working-class people have less than $10,000 saved.

And 14% have nothing saved. For working-class America, a $300,000 retirement savings could cover their minimum expenses. But only 16% of working adults have this much saved.

The Type of Account Plays a Major Role

Today, there are multiple ways you can save for retirement.

Different accounts exist for the sole purpose of retirement savings, but each account type maximizes your retirement fund differently. Therefore, the type of account you open depends on how much you save.


The most common retirement account is the 401k. This is a retirement account offered by your employer and is the easiest retirement account to manage. Money is withheld from your pay and sent to the account.

What if you lose your job? If your new employer offers a 401k plan, you can transfer money from your previous account to your new account. Or, you can set up a different retirement account, using one of the following options.

Solo 401k

Similar to an employer 401k, you control your solo 401k. You deposit a percentage of your income and have the option to roll over money from a previous 401k.


SEP, or simplified employee pension, is a great option for the self-employed or business owners because they’re easy to set up. You contribute 25% of your income.

Simple IRA

This is also an easy option and is recommended for business owners with a small staff.

You and your employees can have a retirement account without the complex paperwork. If employees contribute to the IRA, employers must match that amount.

Traditional IRA

Anyone can create and control their own IRA. The money grows tax-free. The laws get pretty complex if your employer offers a 401k. This option is best for the self-employed.

Roth IRA

This is one of the most popular IRA options. Your money grows tax-free; but unlike a traditional IRA, a Roth IRA has no penalty when you take out your money early.

But you can’t make more than $131,000 (or $193,000 if married). If you make more, a traditional IRA is your best option.

Spending Too Much

Many people spend more than what they make — not only at a young age but also at an older age. One-third of adults have higher credit card debt than they do in savings.

We’re not the only ones to blame. Advertising, pressure from friends and social standards affect spending habits. But many people fall into the habit of impulse spending or spending as a “treat.”

This affects everyone of all ages. When you retire, you decide to treat yourself in different ways such as buying a boat. As you get closer to that age, be as frugal as possible.

Your priority is covering all expenses while in retirement, not splurging.

How Much is Enough?

With all of the facts and figures, it’s difficult to gauge how much is enough for retirement.

$1 million is still recommended, but how many people can save that much money? Which is why most experts give this advice: earn as much as you can and spend less.

Your best bet is hiring a financial planner or advisor to discuss your savings strategy.

If you decide to take the DIY route, pay attention to your retirement savings. If your employer doesn’t offer a 401k, create a solo 401k or any of the IRA options.

Save a percentage of your income. If you have a 401k offered by your employer, see if you can contribute more to your savings account.

If you start early and save little-by-little, this money adds up more than you can expect. Even if you make a salary below the average or are in debt, you should still save for retirement.

So maybe $1 million is unrealistic. But $60,000 in retirement savings can last if you’re smart.

Time to Save for Retirement

Many people don’t have enough to save for their retirement nest egg. A staggering amount of workers don’t find it necessary to save or don’t believe they can save. The $1 million or more retirement savings is ideal but unrealistic.

To improve your retirement savings, open a retirement account as early as possible. Limit your spending and maximize your earnings so you can live comfortably.

Are you looking for a new dentistry job that offers retirement savings benefits? Search for open positions.