Title: Is Over-Saving for Retirement a Real Concern? Let's Uncover the Truth
Title: Is Over-Saving for Retirement a Real Concern? Let's Uncover the Truth
In this phase of life, many of my friends and I are grappling with career milestones and retirement savings. Although retirement might seem far off, it's essential to start planning and saving. I've always believed in accumulating more retirement savings rather than less, but there's such a thing as allocating too much to retirement funding.
During the pandemic, I found myself overworking, writing non-stop to contribute to my retirement savings. Despite the increase in work hours and my family's need for a break, I refused to divert funds from my retirement account. The result was as expected – a year that was more challenging than it needed to be. I got so absorbed in growing my retirement savings that I neglected my near-term happiness.
This episode taught me the importance of striking a balance between retirement savings and enjoying life's simple pleasures. Denying yourself of small joys or larger indulgences for the sake of focusing solely on retirement savings can put you in an unnecessary state of misery.
To achieve balance, try to save at least 15-20% of your income for retirement. Go beyond this if you're comfortable, and you'll reap the benefits later. In my case, I rejected the FIRE (Financial Independence, Retire Early) movement, as I didn't want to sacrifice near-term happiness in the pursuit of an earlier retirement.
But it's essential to adapt your retirement savings goals according to your life's stage. With increased responsibilities, you may have to cut back on your retirement contributions to ensure a healthier work-life balance.
Learn to be comfortable with this adjustment and understand that less money going into your retirement nest egg doesn't mean it's the end of the world. It might be time to reassess your retirement savings approach and ensure it aligns with your happiness and well-being.
In light of my past experience, I should have allocated some of my money towards enjoying life's momentary pleasures, not just focusing on retirement savings. Even though retirement finance is crucial, it's equally important to maintain a balance and not neglect current happiness for future gains.