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- 2 Reasons You Shouldn't Panic if You Think You're 'Off Track' With Retirement Savings</p>
<p>Gabrielle OlyaJune 30, 2025 at 12:04 AM</p>
<p>fizkes / iStock.com</p>
<p>Americans are saving more for retirement than ever before. A recent Fidelity Investments analysis found that the average 401(k) savings rate is now a record 14.3%. However, many Americans are still feeling behind when it comes to their retirement savings.</p>
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<p>While some Americans may be falling short of benchmarks, others are panicking without real cause. Here are a couple of signs you fall into the latter camp, and why you shouldn't panic if you think your retirement savings are "off track."</p>
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<p>You Haven't Crunched Your Individual Numbers</p>
<p>Retirement savings goals are not one-size-fits all; you may be measuring yourself against a benchmark that isn't accurate for your personal situation if you haven't done your own math.</p>
<p>"Being 'on track' for retirement can mean very different things for people based on their unique goals and objectives," said Michael Green, CFP, wealth management advisor at Apollon Wealth Management.</p>
<p>"For example, someone who wants to retire at 55 years old must save more aggressively, and plan for both healthcare and for distributions, versus someone who wants to continue to work into his or her 70s," he said.</p>
<p>Green recommended using an online calculator to help you ballpark your unique retirement savings goal.</p>
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<p>You're Comparing Yourself To Something You Saw on Social Media</p>
<p>Financial literacy resources are now more accessible than ever, but this can be a double-edged sword. It's important to remember that just because a financial influencer shares something about how much should be in your 401(k), this doesn't necessarily mean this holds true for you.</p>
<p>"We all have unique goals, priorities, family situations and resources," Green said. "Since you can't know an influencer's true financial life, it is intrinsically unfair to benchmark your own financial situation against others on social media."</p>
<p>As Green noted, there is no regulating body or agency monitoring what influencers put out into the world, unless you are following a registered advisor.</p>
<p>"That doesn't mean that all social media Is bad — it only means that you shouldn't blindly trust people on the internet," he said.</p>
<p>How To Catch Up if You Are Off Track</p>
<p>Once you plug your own numbers into an online calculator or, even better, work with a financial advisor, you'll have a better sense of if you are actually behind with retirement savings, or if you are just worrying unnecessarily. If it turns out that you are off track, you still shouldn't panic, as there are ways to catch up.</p>
<p>"Build a budget that starts with savings — and stick to it," Green said. "A good savings target for most people is 20% of your income. Work with your advisor or planner to determine where the money should be allocated — 401(k), Roth IRA, brokerage account, emergency fund, etc."</p>
<p>Once you have saved up an emergency fund, make sure you are maxing out your 401(k) match.</p>
<p>"For example, if your employer matches 100% of your contributions on the first 6% of your income, then start with a minimum of 6% of your income going towards your retirement plan," said Paul Jarvis, CFP, partner and financial advisor at Prime Capital Financial.</p>
<p>Next, utilize tax-advantaged growth accounts.</p>
<p>"Max out your health savings account (HSA) and Roth IRA contributions, or use back-door Roth IRA contributions if your income is too high," Jarvis said.</p>
<p>As soon as you are financially able, aim to contribute the maximum amount to your 401(k), as well.</p>
<p>"If your employer offers a retirement plan and you are already taking advantage of the match, work towards maxing out your retirement plan contributions," Jarvis said. "Deploy any remaining surplus cash flow to a diversified taxable brokerage account."</p>
<p>By following these steps, you can get your retirement savings back on track to whatever your personalized goal may be.</p>
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<p>This article originally appeared on GOBankingRates.com: 2 Reasons You Shouldn't Panic if You Think You're 'Off Track' With Retirement Savings</p>
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