Do I Have Enough Money to Retire?
If you've run the numbers and they say yes, but you still don't feel like you’ll have enough for retirement, you're not doing anything wrong. You're just missing a piece most retirement advice skips entirely.
The Retirement Number vs. The Feeling of Enough
There are two very different questions hiding inside "Do I have enough to retire?"
The first is a math question: what's your number, and are you on track to hit it?
The second is a feeling question: do you actually believe you have enough, in your body and mind, day to day, not just on a spreadsheet?
I work with clients on both. But it's the second one that trips people up the most, and it's the one most retirement content never touches.
Where the Enough Feeling Actually Comes From
The enough feeling comes from their current spending and budgeting. They may know how much or about how much they spend, but still struggle to meet their obligations in certain months, where they find themselves taking from their savings account when they'd rather not. They are consistently saving, matching up to having enough, but they're also looking for more certainty to the actual results.
That gap between "the math says yes" and "I don't feel in control of my money right now" is where knowing you have enough, ie., confidence, quietly leaks out, even when nothing is technically wrong.
Client J’s Story: Numbers Add Up But Is Still Asking Will I Have Enough
Here's an example. I was reviewing the numbers for Client J and calculating their estimated retirement number and their estimated retirement savings. Client J was on par: no gap, no "you need to save more." But Client J kept asking, Are you sure? I don't feel like I have enough right now; how do I know that's going to be enough for retirement?
The math wasn't the problem. The confidence was.
I explained to Client J that they needed to track for 30 days. The numbers we were using for expenses were best guesses because they were using the bank account budgeting and tracking method.
Client J didn't carry any extra debt, only their mortgage, but for Client J to be able to say "yes, I spend X amount on groceries, fuel, etc. every month," it was a quick look back and guess at the numbers we used.
Telling Client J to track for 30 days was going to give us one of two results: either the estimates and guesses were good, and tracking reassured them, or it gave us better information, a better number, but not far off.
What 30 Days of Tracking Actually Revealed
Client J tracked for 30 days. While this may seem tedious, it also builds awareness, which supports confidence, and Client J needed that with the enough feeling.
30 days of tracking said spending was within $50. Reassurance, right? Not quite yet.
Client J said, "But in this month I know I spend more here, and in this month I know I spend more here." I explained that as their money system became fully set up and having used it longer, the expense number would be more aligned.
A $50 difference is nothing as you're preparing for retirement, but having specific knowledge that your spending is close to that every month is another.
Client J went from a vague "I don't feel like I have enough" to naming specific months and specific patterns. That specificity is the confidence.
Beyond Tracking: Bringing Awareness to the Moment of Purchase
Tracking after the fact is one tool. But I also encourage clients to bring the awareness to the time of purchase by looking at the cost on the receipt, or register, or even the price on the shelf or the tag before purchasing. This is increasing your awareness by acknowledging a number and not just buying a thing.
The Values Exercise
I also love to support clients with their spending by looking at values. Most of the time, when we feel like we don't have enough is because we're spending and not really cataloging or referencing. After taking clients through the values exercise, which helps them identify the top 3 values of their life and reference their spending to their values, it brings about a lot of peace.
One client found that she wasn't spending on one value nearly enough. Here's her testimonial:
"I absolutely loved auditing my bills and spending using a values alignment tool that Dalene did with me. It was soooo empowering to see the alignment."
Another client took the value awareness all the way to the time of purchase, asking herself: does this fit in my values, and how?
That question, does this fit my values, does more for the "enough feeling" than another spreadsheet ever will.
The Number, Briefly
I won't take you through how to calculate your retirement number — I've already done that in Will I Have Enough for Retirement? and you can run your own numbers with my retirement calculator — but a few things matter for accuracy:
When you input your current expenses, think about the makeup of these expenses.
How well do you know these expenses?
Have you been tracking and budgeting for several years?
Do you feel solid in this number you're putting in here?
No need to be perfect, but the more accurate these numbers are, the more accurate your enough number will be.
Calculating your estimated retirement number and savings is not a one-and-done exercise. The more accurate you get with your expenses, the more savings you are able to put in retirement, and how well your savings are doing in the market will give you new numbers.
These efforts are small, add up over time, and it’s important that you refresh your numbers. This will prove that you’re gaining ground, making progress. This will increase your motivation and desire.
Where I Disagree With the Standard Advice
Financial advisors I've heard have said you either need 70 or 80% of your income and that's enough. I understand why they have a target because getting into the nitty-gritty of your monthly numbers isn't what they do.
When I retired, I was living on 57% of my income, and shows me the importance of really diving into the numbers. If I had gone with their advice, I would have still been working.
Focusing on what you need and want is really when you start finding the enough. Is this what I enjoy spending my money on? Is that what I need to make my life comfortable and enjoyable? Those answers are different for everyone, and so therefore the enough need is different for you and me.
My Own Enough Feeling
When I first started my journey, I was not even sure if I could do it. I had not been budgeting or even engaged with my numbers. And like most individuals, I was winging it and using the bank account method.
But as I began my journey, the first thing I did know was that the more I saved besides just reaching my savings goal, it also meant the less I would need in retirement every month. This started my journey of enough.
I also got to know my expenses really well. In the beginning, I used money envelopes, which puts you as close as you can to your expenses. I slowly grew to where I use a bank account for bills and spending, and a credit card for the irregular savings (those are paid off every month using my sinking funds).
As time has gone on, I still also have my budget document that I update when I have a pay increase or I feel that expenses are increasing steadily.
For example, knowing that what I pay now every week I shop is different than what I paid six months ago, but reviewing my budget document I can acknowledge what that change means for my overall budget.
That's the whole game: staying close enough to your numbers that a grocery price jump doesn't shake your confidence; it just gets folded into the budget. This was exactly what I did when my medical premium increased by 300% this year.
What to Do This Week
What can you do to help you know that you have enough?
Focusing on what you need and want is really when you start finding the enough. Is this what I enjoy spending my money on? Is that what I need to make my life comfortable and enjoyable? Those answers are different for everyone, and so therefore the enough need is different for you and me.
First, I challenge you to track your spending for at least 30 days if you aren’t already doing so. This gives you good insight into the true cost of your expenses.
Next, if you’re still struggling and wondering if you’ll have enough — even if the retirement calculator says so — I invite you to book a Retirement Strategy Session.
During this session, we’ll look at your numbers together, notice if anything is missing or duplicated, and not only create your estimated retirement number and your estimated retirement savings amount, but I’ll also help you draft a budget document to help you see your true monthly costs.
No matter what you choose to do, make sure you are not stalling, choose a step that will increase your retirement confidence.
