If, like me, one-size-fits-all recommendations make you roll your eyes, you're probably sick of hearing investment advice that's not at all realistic for your situation. Maybe you're in your 30s, determined to retire early. Or perhaps you're in your 50s, desperately working to catch up on retirement savings.
In either case, you've undoubtedly heard the message: Take advantage of your employer-sponsored 401(k) plan. The truth is that it's not always as easy as it sounds.
High contribution limits
Suggesting that someone max out a 401(k) is like saying, "I want you to take $23,500 off the top of your annual salary and tuck it away in an account you can't access without being penalized until you're at least 59 1/2."
Given that the median annual income in the first quarter of 2025 was $62,088, you're essentially saying you need to get by on $38,588 instead. For many, it's simply not feasible.
Image source: Getty Images.
More (unwanted) advice
The next suggestion is usually something like, "Well, at least contribute enough to receive the full employer match." Let's say your employer matches 3% of your contributions, and you're earning that median of $62,088. That means you contribute $1,863 annually, and your employer puts in another $1,863.
On paper, it looks simple enough. Contributing $1,863 annually means you only have to come up with a little over $155 per month. However, if you're barely covering your bills and don't have money put away for an emergency, parting with even $155 per month may seem out of reach.
As someone who lost nearly everything to sky-high medical costs due to a brain tumor, two start-up businesses that failed to take off, and the Great Recession, I remember what it feels like to believe my husband and I would never be able to make up for the lost time or investments. And honestly, I couldn't imagine a day when maxing out our retirement accounts would be a reality.
Changes worth considering
As mentioned earlier, I have an aversion to one-size-fits-all advice. We're all different, and what works for me may not work for you. However, I didn't want to write about how difficult it is to save for retirement without at least laying out four potential solutions. This is what worked for us, and while I'm not going to lie and say it was easy, it has been effective.
Save first
For years, my budgets looked the same. I would note our income, then subtract how much we owed on each of our bills from that amount. If we had any money left at the end of the month, I would put it into a savings account or (more likely) spend it on something that popped up, like soccer league fees for our boys.
Here's what changed: Once I realized how much we had to make up if we ever wanted to retire, the first thing I listed each month was how much was going into a retirement account. What I had left was what I had to spend.
Live below your means (where possible)
For us, moving from the coast back home to the Midwest has made a world of difference. Not only is the overall cost of living lower, but we were also able to buy a less expensive home, spend less on travel, and focus on avoiding debt. For example, we're dedicated to maintaining our vehicles and driving them until there's nothing left but four hubcaps.
If you live in a high-cost-of-living (HCOL) area, this may be more of a challenge for you. However, start thinking of areas where you can cut costs, like paying off high-interest debt; cooking from scratch; and finding free activities in your area, like visiting parks, hiking, biking, or game nights with friends.
It may sound strange, but there are few things more satisfying than outsmarting the cost of living in an HCOL area.
Maximize benefits
I never plan to retire (not full time, anyway), but we always thought my husband would as soon as he hit full retirement age. That is no longer the case.
This won't be the situation for everyone, but for us, postponing his retirement and the age at which he begins collecting Social Security until 70 means several more years to max out retirement and several more years to allow both of our accounts to grow.
Accept reality
I took a break from newspaper reporting for a few years and began writing novels. While I enjoyed it tremendously, I was never more than a mid-level author. And let me tell you, mid-level authors make very little money.
For me, accepting reality meant going back to my roots and earning a steady paycheck. Doing so not only allowed me to open my own 401(k), but it also provided the funds I needed to make the most of it. What's been surprising for me is how much I love it. I get to write about something different every day and meet some truly fascinating people.
For you, accepting reality may mean something totally different. Whatever your "thing" is, the payoff is having more money to put toward retirement, and once you get used to how good that feels, you won't want to go back.
