Ten years ago I hadn’t heard of the FIRE movement. Financial independence, early retirement, 4% safe withdrawal rate, pfftt! Like the majority of Americans, I was caught in the consumerism trap, wondering where most of my money went at the end of every month, and wondering if I’d ever have enough to retire.

Today, I’m a believer and pusher of FIRE. And yes it can become addicting.

No idea what FIRE is? Here’s a great beginner’s guide from my friend Steve, at Think Save Retire.

Those of us on the FIRE path are often looking for new ways to increase our high by earning more, saving more, and capitalizing on investments. We get impatient, rework our spreadsheets umpteen times, and learn not to sweat the up and down stock market. And we try to spread the flames to others.

We want all to know the benefits of financial independence too. To be in control of their own life, escaping the cubicle if desired, and realizing happiness and joy.

But if we look, we see reminders everywhere, that for most Americans’ the thought of retiring early is inconceivable. Some even believe they may not ever retire.

Is Saving Money Hard?

Survey after survey, tells us Americans have very little if anything saved for household emergencies let alone retirement. Reasons provided for this lack of savings include:

• Income not high enough/Living paycheck to paycheck
• Too early to start saving/Too late to save
• Won’t need retirement savings
• Paying down debt
• Investing is complicated/Too risky
• No access to retirement savings plans
• Kids expenses to pay for
• I want what I want now, not later

Many of these reasons were ones I used in the past. Fortunately, I realized for us they were all just excuses. Some were significant to overcome, others easier. They all had one thing in common though, and that was a need to change my mindset.

Stand up to your obstacles and do something about them. You’ll find they haven’t half the strength you think they have. ~ Norman Vincent Peale

With some thought, we can surely figure out ways to save money – eat meals at home, adjust the thermostat, cut cable, shop at discount and thrift stores, or even downsize our vehicles and home.

But actually adopting the attitude and behaviors to save money – and all those other things listed above – is where it’s so easy to get tripped up.

Sometimes it’s because we care too much about what we think it means, and we worry how it will look to others. Or we think we deserve to eat out, watch HGTV, go on fancy vacations and shop wherever the hell we want to when we want to.

I get it.

But I also get that without adequate savings for retirement, life is going to be H.A.R.D.

But I’ll Start Saving Later

You might think you’ll save later. When the kids are gone, when you’re making more money, or when the house is paid off, however, economist Anthony Webb says the opposite happens.

In this WSJ article, Webb explains that instead of saving for retirement empty-nesters begin spending more on eating out, nice vacations, and non-durable goods. These spenders indicate they’d delay their retirement to amass the additional funds necessary to maintain their current lifestyle.

The problem with this? They (and you) may not have that option.

Liz, Chief Mom Officer, points out in her recent post that approximately 50% of people retire earlier than planned, due to health issues, disability, company layoffs, family needs, or other work/job-related reasons.

Retirement Savings Crisis?

According to a new research report published by the National Institute on Retirement Security, there is indeed a retirement crisis. The analysis of the U.S. Census Bureau’s Survey of Income and Program Participation released in 2016 and 2017, found the median retirement account balance among all working individuals to be $0.00.

Yes, you read that right, zero dollars.

Key findings listed in the report include:

1. More than 100 million people of working age (59%) hold no retirement account assets in employer-sponsored 401k (or similar) plans, Individual Retirement Accounts, or defined benefit plans.
2. The typical worker with accumulated savings in retirement accounts has a modest account balance of $40,000. Of those aged 55 to 64, more than 68% have retirement savings equaling less than 1X their annual income.
3. More than 3/4’s of Americans (76.7%) don’t meet conservative retirement savings targets for their age and income, even when including their entire net worth and not just retirement account balances.

However, while the research report and key findings above are new (September 2018), the analysis was conducted on data from December 2013 account balances.

Let’s look at some more recent information.

The 2017 Retirement Confidence Survey by the Employee Benefit Research Institute (EBRI) and independent research firm Greenwald & Associates, found that even though many Americans feel stressed about retirement, they aren’t taking steps to prepare for it.

61% of workers say they or their spouse has saved something for retirement, yet 37% of those over the age of 55, and 48% of those 45-54 have less than $25K saved.

Savings and Investments by Age

When asked if they’ve calculated the amount of retirement savings they need, only 51% of those over the age of 55 had. Approximately 40% of those between the ages of 35 – 54 have also calculated their retirement savings needs.

Whether they used a retirement calculator to determine their needs or are just guessing, over 37% of all workers (any age) think they’ll need at least $1 million saved, with 26-28% in all age groups believing $500,000 – $999,999 will do it.

Amount Needed for Retirement, by Current Age

Save Today to Comfortably Retire Ever (and Quite Possibly Early!) on Your Terms

Understandably, for some people saving $400 for an emergency let alone $500K or more for retirement, is indeed hard if not impossible at their current income level. For most of us though it’s achievable.

As I mentioned earlier, it will likely take a change of mindset – or quite frankly an attitude adjustment, but it is possible.

Let’s take a look at those reasons given for not saving again, but this time with articles to help you find some potential ways around them (Note: many are from my other websites WomenWhoMoney and WomensMoneyTalk):

• Income not high enough
  • Negotiate a Raise
  • Contract or Part-Time Work? The Smarter Way To Make More Money
  • Determining the Right Side Gig for Extra Cash
• Living paycheck to paycheck
  • Start Saving While Living Paycheck to Paycheck
  • Useful Ways to Save on Monthly Expenses
• Too early to start saving/Too late to save
  • Make Changes In Your Life; It’s Not Too Late To Start Doing Or Stop Doubting
  • You can Start Late and Still Retire Early
  • It’s Never Too Late To Improve Your Money And Life
• Won’t need retirement savings (Really?)
• Paying down debt
  • Payoff Credit Card Debt for Good
• Investing is complicated/Too risky
  • Investing in Your 401k Plan
  • Those Target Date Things In Your Retirement Plan
  • Building Wealth with Real Estate
• No access to retirement savings plans
  • Individual Retirement Accounts
  • Can I Utilize a Spousal IRA
• Kids expenses to pay for
  • Control the Cost of Kids Activities
  • Save Money on Child Care Expenses
  • Using an FSA to Save on Child Care Costs
• I want what I want now, not later
  • What Helps You Achieve Financial Independence Besides Money
  • Enough With Being A Financial Moron, Be Happy Instead
  • Sexy Vehicles or Sexy Finances?

There are so many resources to help, but if you can’t find the information you need, please feel free to reach out to me, and I’ll work to help you find it.

It’s never too early to begin saving. It is also never too late; it’s just a whole lot harder.

While you might not be able to retire early or even want to, retiring ever won’t be a problem, unless of course, you never start.