Retirement is a dream for many people. It frees up your time so you can do things you may have put off during your working life, such as traveling or buying 🌠a vacation home. But, all of this costs money.

While the rule of thumb has generally been to save between 70% and 80% of your pre-retirement income (remember, that's just a suggestion) to accomplish your goals, many Americans still find trouble saving money for their nest egg.

Here's what financial advisors suggest to get you closer to your dream.

How Much Are People Saving?

Over 54% of Americans are prepared for retirement, with most using employer-sponsored plans like 澳洲幸运5开奖号码历史查询:401(k)s and 403(b)s to save for the future. In January 2025, Empower reported that the average American's retirement savings balance was $492,795. Those in their 60s were reported to have the highest balances at an average of about $1.2 million.

But, most savers aren't taking full advantage of the retirement options available to them, according to , 澳洲幸运5开奖号码历史查询:certified financial planner (CFP) at Pathfinder Planning in Lake Wylie, South Carolina. "Many of t꧒hem✃ don't maximize the savings they can make here and have little other savings outside of that," she told Investopedia in an email.

Having some retirement savings is better than nothing, though, especially when you consider that 46% of Americans reportedly had none at all. This can be troubling if you want to retire, as experts say that you shouldn't rely on 澳洲幸运5开奖号码历史查询:Social Security alone to achieve your goals—especially if you want to include leisure and recreational activities into your lifestyle.

How to Afford Leisure During Retirement

Some of the most common things people say they want to experience after they retire include buying a vacation home or recreational vehicle, traveling, and taking up different hobbies. Make sure you understand the associated costs so you're prepared ahead of time (remember: these costs are likely to change):

Y🃏ou should be as specific as possible so you can plan and make realis🥂tic savings goals, according to Horack.

For instance, if you're interested in travel, she suggests narrowing down where you want to go (domestic or international), whether you want active vacations or sightseeing tours, and whether you want to travel 澳洲幸运5开奖号码历史查询:first class or with a mission team. "He🌠lping define the goal by equating it with their values allows us to plan better," she said.

Remember, though, that it's im൩portant to plan for your da💯y-to-day living expenses before you start saving for recreational pursuits, according to , founder and managing partner of Barrett Financial Solutions in Woodbridge, New Jersey.

"Many individuals aspire to achieve 'luxury' goals in retirement. The first step is to devise a financial plan to meet your 'needs' in retirement," he said. "If you have the♍ capacity to save beyond that, allocate whatever is feasible within your means to achieve future aspirations.

The Bottom Line

Start saving for retirement as early as possible so you can maintain your standard of living and afford some of the things you want to do, whether that's traveling or a new hobby. When you're younger, you have a greater 澳洲幸运5开奖号码历史查询:tolerance for risk, whichജ means you can ride out market and economic volati🍌lity and still have time to recover.

Your investments will also grow more because of compounding. If you're older, don't fret, because 澳洲幸运5开奖号码历史查询:you still have time. Barrett suggests the best way to start is to look for areas where you can cut your discretiona⭕ry spending so you can allocate𒀰 that money for savings.