How Much is Too Much Savings for Retirement?

Women Who Money
6 min readAug 8, 2022

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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.

Your debt is costing you.

Of course, it’s sometimes possible to pay down debt and save simultaneously. But if you’re saving a lot for retirement and ignoring your debt, calculate what the debt is costing you. Consider the amount and type of debt, interest rate, and fees.

You skip the things you value most to save more.

For example, you pass up travel, time with loved ones, and meaningful experiences so you can save more.

You don’t have a financial plan.

A financial plan is like a roadmap -without one, it’s hard to know where you are or where you’re going.

If you don’t know how much you have or need, you can’t know if you’re saving the right amount.

You surpassed your original savings goals.

Maybe you want to save more than you need to mitigate uncertainty. That’s not a problem if…

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