Retirement Savings Outlook Bleak

Nearly 50 percent of Americans aren't sure that they're saving enough for retirement. Don't fall into that camp.

A recent survey of American workers says that only 61 percent are fairly confident that their savings will be enough for a comfortable retirement. It's the lowest confidence level seen in more than a decade. Yet the average American isn't saving any faster. What gives?

It's tough to set money aside for a distant retirement if it's difficult to pay bills. Living expenses, mortgage payments, and medical bills take priority over savings when money is tight.

One way to ameliorate the pain is to make automatic contributions from your paycheck directly into your 401(k) plan. Money that never sees the inside of your wallet or checking account usually isn't sorely missed. If your employer matches part of your contribution, you're also looking at an immediate return on the investment of up to 50 percent.

Hey, doctor!

You never know when life might throw you a curve ball. Frequently, age brings higher medical expenses. It's important to make sure that your insurance coverage is up to snuff. Getting caught by a costly ailment without a decent medical plan can wipe out your nest egg.

Many Americans extend their health coverage a few years by working longer. That sounds good in theory, since you'd also draw a few extra paychecks along the way. But theory and practice are rarely the same things, and half of the retirees surveyed in the above-mentioned poll reported that they had to stop working earlier than they had planned. Private health insurance is expensive, but it still beats paying out of pocket when calamity strikes.

Lower costs

Saving for retirement isn't automatic. Whether by lack of planning, unforeseen financial disasters, or a karmic career choice, you could end up short of your retirement goals. Pulling the belt a couple of notches tighter in your golden years is hardly ideal-but it could be easier than you think.

If your family has stayed put over the years, for example, your mortgage will most likely have been paid off when retirement rolls around. That's a couple of thousand dollars in your pocket every month that you probably don't have today.

No work means no commute, and with gas prices rising, that could be a significant chunk of extra cash. Maybe you'll eat at Cracker Barrel more often than at Ruth's Chris Steak House, but when you start adding up all the little differences between a working life and a retired one, the adjustments begin to sound reasonable.

Take action today

Those golden years won't look like El Dorado unless you start planning for it way ahead of time. Maybe you can cut some corners now to make for a happier retirement later, and sock away a few extra bills in that 401(k) plan or IRA account every month. Every time you do, your older self will thank you...in due time.