The que sera, sera retirement planning strategy

$244,750 or $87,572 take your pick.

The Vanguard 2024 How America Saves report, says those number are the average and median 401k balances among their 401k participants aged 55 to 64. 

For those folks time is running out.

Is there a valid excuse for that level of savings? Rarely. 

What are people thinking? Consider that many, perhaps most, of these folks have an employer match as well. 

I maintain that we humans have a serious flaw in our ability to plan and act with the future in mind. Perhaps there is a gene we retain from lower animals that can only live in the moment.  

Maybe these folks have other assets  This quote from a victim of the LA fires caught my eye. 

“It (their house) was our retirement. It was our investment. It was our equity. It was everything.”

Why don’t people save? The common excuse is they can’t afford it. I don’t buy that, especially for people later in their working life. Of course there are low income individuals where that is true, but for most middle class Americans it’s a matter of priorities. There is no money to save, but there is money for XXX? Look around, there is a lot of X spending going on every day. 

I think the essence of the problem is: 

• Poor Planning Skills: Many people don’t have a clear understanding of their income and expenses, making it difficult to track spending and identify areas where they can cut back.
• Lack of Savings Goals: Without specific savings goals, it’s easy to feel overwhelmed and unmotivated to save.
• Impulsiveness: The tendency to make unplanned purchases can significantly impact savings efforts.   
• Procrastination: Putting off saving for the future can lead to regret later on.   
• Fear of Missing Out (FOMO): The constant pressure to keep up with social trends and consumerism can make it difficult to resist spending – but you could save first.

Does it boil down to a lack discipline, to a clouded view of financial priorities? I don’t think Que sera, sera is going to cut it as a retirement strategy.