Sensible Perspectives

Are You Saving Too Much for Retirement?

Posted by on December 24, 2013

A recent Wall Street Journal article argues that people may be saving too much for retirement. The author spoke to a number of experts and identified several reasons that rules of thumb may be misleadingly high. The key points are important, and all are worth some thought.

It is true that many couples will not live to 95 or 100. However, those that do will be sorely disappointed if they run out of money. And it’s not clear whether those whose spending declines throughout retirement are happy spending less or whether declining resources dictate economy measures.

Rules of thumb may work for average people, but I doubt that you are average. Your situation is unique. Your retirement plan should incorporate every important aspect of your life: your family, your health, your interests and your dreams. No rule of thumb can do that.