How Much is Too Much Savings for Retirement?

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Saving for retirement is like the Goldilocks effect. Many people don’t save enough, some save too much, and others save just enough.

Yet, half of U.S. households’ retirement savings fall short, so financial experts often encourage people to save more.

But what about the other end of the spectrum? Is it even possible to save too much?

In truth, saving too much for retirement isn’t as common. And it isn’t a problem if it doesn’t affect your quality of life.

But if you feel like you sacrifice your life today to save in excess for your life tomorrow, this article is for you.

Below, we’ll help you determine if you might be saving too much for retirement. And then, we’ll explore how a financial plan can help you decide how much savings is right for you.

You might be saving too much if…

You struggle to pay for other things.

Cutting expenses is an excellent way to save money. But if you have a hard time paying basic living costs because you save so much, you might need to adjust.