Retirement Retirement Planning

8 Reasons It’s Basically Impossible To Save Enough for Retirement

These obstacles may be standing between you and a secure retirement.

woman sitting on floor reviewing bills while holding head in stress
Updated Dec. 17, 2024
Fact checked

Personal finance gurus and financial planners are full of advice about how to save for retirement. But many of us know that building a nest egg isn’t easy.

Feeling frustrated over your failure to save enough for retirement is OK. However, in the current financial climate, inflation, debt, and other issues make it tougher to build savings.

Following are some reasons people are struggling to save enough for retirement — and a few suggestions to help you get ahead financially during trying times.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!1

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

The stock market is volatile

Sakchai/Adobe screen with stock exchange market chart having colorful numerals

Many experts contend that investing in stocks is one of the most important ways to build enough savings to see you through retirement.

However, investing in stocks can be a wild ride. Stocks sometimes soar, and other times they crash. If you don't have a strong stomach, all that volatility can be difficult to bear.

Still, history has shown that many people who take a little risk in the stock market are handsomely rewarded over the long haul.

There's no guarantee that you'll make money in stocks, however. So you might want to consult with a financial advisor to determine if investing is right for you.

Inflation remains an issue

Deemerwha studio/Adobe hand holding inflation label over pennies on table

Inflation is finally starting to ebb, and prices of items such as food are not rising as fast as they were last year. However, prices remain much higher than just a couple of years ago.

It can be tough to save money when the cost of everyday expenses goes up. So try to find ways to save on groceries, such as shopping at sales and using coupons.

The more money you save on goods and services, the more cash you will have to contribute to your nest egg.

People are living longer

Pinyaphat/Adobe senior asian man laughing while talking at mature man outdoor

According to the Centers for Disease Control and Prevention, the average life expectancy has been declining slightly recently, now at 77.5 years.

However, life expectancy remains much longer than it was a century ago. And when people live longer, they have to save more to cover those extra years.

Saving more cash for those additional years can be a daunting challenge. But you want to ensure you don't run out of money before you run out of life.

Earn $200 cash rewards bonus with this incredible card

There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.

The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.

This card also offers an intro APR of 0% for 12 months from account opening on purchases and qualifying balance transfers (then 19.49%, 24.49%, or 29.49% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.

The best part? There's no annual fee.

Click here to apply now.

Health care is more expensive

Monkey Business/Adobe female doctor wearing scrubs and stethoscope standing in clinic lobby using tablet in hand

Perhaps you look forward to the day you can retire and enroll in Medicare. However, that federal program almost certainly won't cover all your medical expenses during retirement.

Health care costs continue to grow, and you will have to foot the bill for at least some of those expenses during retirement. So try to save extra money for such expenses, including the cost of things like prescription drugs.

Social Security could be at risk

JohnKwan/Adobe social security bonds placed over global stock market page on newspaper

Everyone knows that Social Security isn't on a firm financial footing. As a result, some politicians have even suggested cutting benefits to help shore up the program’s finances.

If that happens, you might earn less from Social Security than expected. And that means it might be wise to save more now to compensate for that potential shortfall.

People are carrying more debt

Shisu_ka/Adobe man lost in thoughts while deciding which card to use for payment while sitting on floor with bills and calculator

Debt is one of the biggest obstacles to saving enough for retirement. Credit card debt, student loans, or loans for big-ticket items such as a home or car can prevent you from saving enough.

Deciding to crush your debt is one of the best ways to free up money for retirement. So try to pay down or eliminate your debt if you can.

Pensions have largely disappeared

cacaroot/Adobe stock market graph with calculator having pension written on display

In the past, many companies offered pensions to their employees. You would give the company decades of work, and they would repay you with a generous pension.

But times have changed, and fewer companies now offer pensions. Unfortunately, that means you might not be able to rely on a pension to help you through retirement.

So if your company offers a 401(k), try contributing to it — especially if your employer offers matching funds.

Retirement options are confusing

cacaroot/Adobe graphs on table with plan

There are many great ways to save money for retirement, such as contributing to a 401(k) or IRA. But some people find all these options confusing.

This is another situation where turning to a financial advisor or another money professional might be helpful. As confusing as your options might seem, a pro should help clarify things so you can make the right choices for your future.

Bottom line

lovelyday12/Adobe man putting pennies in jar on table while writing on notebook using pen

It can be challenging to save for retirement, but there are some things you can do now to prepare for success in the future.

Also, it might help to find ways to earn extra money, such as developing a side hustle. A little bit of extra cash can go a long way toward helping you reach your financial goals.

Lucrative, Flat-Rate Cash Rewards

5.0
info

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details