Why Retirement Always Feels Impossible and What To Do About It

Jul 28 2026

Written by Sandy Yong is a licensed CFEI® & award-winning author with a proven track record of success

Why Retirement Always Feels Impossible and What To Do About It

Retirement is one of life's biggest milestones. When people think of retirement, it often creates feelings of anxiety and worry. Especially today, as Americans are grappling with inflation, rising daily expenses, insufficient savings and the reality of longer lifespans.

Retirement also brings the uncertainty of, perhaps, having to find a new purpose. Leaving the workforce is a huge milestone and a stage of life that brings many changes. The process of planning and preparing for this day can easily be overwhelming. And the older you get, the more you may feel like you’re behind. Don’t worry, there are strategies to help you create a realistic plan that helps you to become more confident about retirement. It may seem like a big hurdle, but I’ll show you the steps to make it feasible and within reach.

Why Retirement Seems Out of Reach

There are a multitude of reasons why adults don’t feel like they’ll ever be able to retire. Let’s look at a few factors.

First of all, Americans are feeling the pinch when paying for everyday items like food and fuel. According to the Bureau of Labor Statistics, the Consumer Price Index (CPI) increased 4.2% from May 2025 to May 2026. This means that every dollar you have to spend or invest, has to work 4.2% harder just to buy the same things you would have bought in May 2025. Throw in the pressure to savie for retirement, and its just that more daunting to find ways to put money away. And it is also a reminder that everyday expenses will likely cost more when you're ready to retire, putting even more pressure on you to find more ways to save for retirement.

It also costs more to live the American Dream in your own home. As of June 2026, the average home value in the United States was $372,995, according to Zillow. That means if you’re able to afford a home, you’re probably spending many years (and many paychecks) paying down a mortgage. And making it that much harder to find ways to put away money for retirement.

Americans spend about four decades in the workforce. Not only is this a significant portion of our lives; your job becomes a part of who you are. Not having the daily routine of going to work can be challenging for people to comprehend. Furthermore, it can take a while to adjust to the newfound freedom and the loss of contact with former colleagues.

On top of that, you also need to find a new purpose. Your job title no longer defines you. So you might find new meaning in volunteering, community involvement, or picking up new hobbies.

So from a financial and personal perspective, it's getting harder and harder to rationally think of how to plan, save and get ready to retire.

Knowing What You Have To Save In Order To Retire

Part of being able to save for a comfortable retirement is knowing how much money you'll need to have saved in order to retire and live the life you want. Finding that balance isn't just hard, it's anxiety creating and in some cases it's enough to keep putting off the process of planning and saving for retirement; creating a cycle of anxiety.

If your goal is to have $50,000 in annual income when you retire, you would need a $1.25 million nest egg, assuming you withdraw 4% yearly. If this seems overwhelming or impossible, just know that according to the Federal Reserve’s 2022 Survey of Consumer Finances (the latest survey), the average savings balance for those ages 55 to 64 was $72,520. If you feel like you’re falling behind, you’re not alone. In the next section, we’ll explore how to set and act on retirement goals.

Determine Your Retirement Goal

The first step toward setting up retirement savings is to estimate how much you think you will need in annual income during retirement. As a general rule, most Americans need to have 70% to 90% of their work-life income as an income stream in retirement. So, if you currently earn $80,000 a year, you could need $60,000 a year in retirement.

You’ll also need to factor in your life expectancy and future income, such as Social Security benefits or investment accounts. You can use a retirement calculator to find out how much you need to save per month to achieve your desired retirement income.

Another thing to keep in mind is that as we age, our health declines, and we may have to pay for medical expenses. Leveraging your Health Savings Account (HSA) can help to cover medical care costs as you grow older.

Discuss Retirement Plans With Loved Ones

If you have a spouse or partner, it’s important to share your retirement vision and plan as a team. Talk through key decisions like where you want to live and the lifestyle you expect to lead, both to make sure you are aligned and to plan accordingly. For example, planning to live out your retirement in an urban area takes a bigger nest egg vs. living in a rural setting. And as you make plans, don't forget to plan for caring for your aging parents or your children. Depending on your age, the age of your parents and your children, you will have to make different financial decisions as you set your retirement plans.

I read a classic book, The Experience of Retirement by Robert S. Weiss. It’s based on interviews with men and women who follow their real-life retirement journeys. One key aspect that I found interesting is that when both partners retired around the same time, they were happier than couples who retired at different times. The main reason is that when couples retire at the same time, they can enjoy spending quality time together and doing activities. If one partner retires earlier than the other, the working partner may feel some resentment towards the retired partner. And the partner who has retired is “waiting” for their partner to retire and is doing activities on their own. That’s why being open and communicating your desired lifestyle will help ensure you’re both on the same page.

Adjust Your Money Habits

To achieve your retirement savings goal, you may need to make some changes to your current life budget. Once you've defined the financial goals for your retirement, then it's time to start planning on how you get there. For example, you will start setting aside money from every paycheck to go directly into your your retirement savings account(s). By using direct payments you won't have the temptation to "skip a month", and if you're working full time you are likely able to have retirement investments go into your IRA or 401(k) account pre-tax, meaning you won't have to pay taxes today on the money you're saving for tomorrow.

As an aside, if you don’t already have an emergency savings fund, aim to set up a separate account that covers three to six months’ expenses (you might need more if you’re planning to retire soon). Having an emergency fund makes it easier to get through and past the unexpected car repair, home maintenance or other unexpected expense that could derail your savings.

Take a tally of the debts you carry, including credit cards, loans, lines of credit, and mortgages. You’ll want to create a debt repayment plan so that eventually it frees up your cash flow.

Examine your household expenses. See if there are subscriptions or services that you no longer use. Negotiate with your providers to lower your bills. If you can save a few bucks every month, you can redirect your money towards your retirement savings.

Transition With Part-Time Work

Some people may find that leaving the workforce and going straight into retirement is too big of a change to handle all at once. It doesn’t have to be a night-and-day difference. You can make the transition gradual by taking a part-time job, starting a side gig, or staying at your company while reducing your hours.

This staggered schedule can make it easier for you to adjust financially and emotionally. Plus, working part-time hours can help to keep your brain active and maintain your skills. Those who are working and earning some income may feel like they’re still contributing to society.

Find a New Purpose

If you’re feeling restless during retirement, it may be a sign to find new meaning in your life. While it can be an exciting new chapter, it’s a time of self-exploration. Perhaps there are hobbies and interests that you put on the back burner because you had to dedicate years to raising kids. Now, your children are probably grown up and more independent. So, you’re faced with more time on your hands.

You might find new activities to keep you occupied, such as gardening, playing pickleball, attending social gatherings, traveling, taking art classes, being involved in your local church or community, and volunteering. Your social network will likely evolve as you make new friends to hang out with.

Regardless of where you are in life, planning and preparing for retirement can and will improve both your current mindset and your golden years. Knowing you have a plan and that you're building toward retirement eliminates current-day stress. Getting to retirement with the means to live the life you want is the goal you can't wait to achieve.

FAQ

When is the right time to retire?

The traditional retirement age is 65. However, some people may choose to adjust their timeline based on their unique circumstances. Once you have established a financial roadmap to help you save money for your retirement, you’ll be set up for financial stability. However, there are emotional and health aspects to consider, and it’s ultimately a personal choice.

What if I haven’t saved enough money for retirement?

That’s a concern for countless Americans. Fortunately, by implementing sound money habits, you can catch up and grow your wealth. There are tools and resources available online to help you figure out how much money you’ll need to save every month. It will require some discipline and effort, but it’ll be worth it.

How do I transition into retirement without feeling overwhelmed?

Each person adjusts to retirement differently. Retirement is a distinct stage of life and comes with many changes. To help you ease into retirement, consider taking on part-time work, finding new hobbies, and having a social support network.