This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Retirement Dilemma: Live the Life or Save More?

NEW YORK (TheStreet) -- A lot has been written about retirement and how people should be saving more to live comfortably in their old age. But is there such a thing as going overboard with retirement savings? Are we becoming obsessed with retirement, so worried about the future that we deny ourselves many of the things we should be enjoying right now?

In a new nationwide survey conducted for TheStreet by GfK Custom Research, 85% of respondents said "it is important to be prepared for the future by sacrificing and saving today."

It would seem that even if they could afford to go on vacation, buy their dream home or upgrade to a nicer car, many would choose to put more money toward their retirement accounts instead.

Carrie Schwab-Pomerantz, president of Charles Schwab Foundation and senior vice president at Charles Schwab, says that isn't necessarily a bad thing, especially if one is playing catch up on retirement savings.

Must Read: Pension Tension: How States and Cities Are Coping

"If you started saving 10% to 15% of your income in your 20s, you should be on track for a comfortable retirement," says Schwab-Pomerantz. This could mean you will have some extra money now to spend on the things you'd like to enjoy.

But if you're in your 40s and you haven't even started a retirement account, Schwab-Pomerantz says you may need to set aside up to 40% of your income. Saving that much could indeed lead you to make sacrifices today.

Retirement Paranoia

Of those surveyed by GfK for TheStreet, 75% said they currently do not live beyond their means. Even then, 51% said they still find it hard to save for retirement, and 44% reported worrying that they aren't doing enough financially to prepare for retirement.

Austin Nichols, a senior research associate for the Urban Institute's Program on Retirement Policy, believes many people are paranoid about retirement because of constant reports that Americans are just not saving enough.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.30 0.42%
FB $104.24 -1.15%
GOOG $742.60 -1.02%
TSLA $230.26 -0.58%
YHOO $33.81 2.64%


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs