We recently published an article for the “super-savers“—those rare birds who worry they’re hoarding too much cash for the future.

If you read that and thought, “Must be nice to have that problem,” this article is for you.

The uncomfortable reality is that most Americans are woefully unprepared for retirement. They aren’t just missing their goals; they don’t even have goals. They’re crossing their fingers and hoping it all works out.

Hope is not a financial strategy.

If you’re worried you might be falling behind, you need to face the facts now, while you still have time to course-correct. Here are five flashing red signs that your current savings plan isn’t going to cut it.

1. You have no idea what your ‘number’ is

If I asked you right now, “How much money do you need to retire comfortably?” what would you say?

If your answer is “a million dollars,” “a lot,” or a blank stare, you’re flying blind. You cannot hit a target you haven’t defined.

Many people avoid this calculation because it’s terrifying. They’re afraid the number will be so big it’s discouraging. But ignoring it doesn’t make it go away.

You need to sit down, look at your current expenses, estimate what will change in retirement (maybe no mortgage, but higher healthcare costs), and use a reputable retirement calculator.

You need a concrete goal, even if it’s a rough draft.

2. Your retirement plan is ‘Social Security’

Social Security is a safety net, not a hammock. It was never intended to be the sole source of income for retirees.

According to the Social Security Administration, the average monthly retired worker benefit for 2026 is roughly $2,071.

Could you live on $1,900 a month right now? That has to cover housing, food, utilities, transportation, and healthcare. For most people, living solely on Social Security means a drastic reduction in their standard of living, hovering near the poverty line. If you don’t have a significant nest egg to supplement those government checks, you’re headed for a very difficult retirement.

3. You’re leaving ‘free money’ on the table at work

This is the single most damaging financial mistake employees make.

If your employer offers a 401(k) match—for example, they match the first 5% of your salary that you contribute—and you aren’t contributing at least that 5%, you are literally turning down a 100% immediate return on your investment.

There is nowhere else in the financial world where you are guaranteed to double your money instantly. I don’t care how tight your budget is; you need to find a way to get that match. If you don’t, you’re volunteering for a pay cut.

4. You’re saving a fixed dollar amount, not a percentage

Perhaps you set up an automatic transfer of $200 a month into your IRA back in 2015. You feel good because it runs on autopilot.

The problem is inflation. That $200 bought a lot less in 2023 than it did in 2015. If your income has gone up over the years but your savings amount has stayed flat, your savings rate has actually plummeted.

You should aim to save a percentage of your income—experts often recommend 15%—so that as your pay rises, your savings rise automatically. If you get a raise, your retirement fund should get a raise too.

5. You treat your 401(k) like an ATM

When a financial emergency hits—a broken transmission, a medical bill, a leaky roof—it’s tempting to look at that big balance in your retirement account as a lifeline.

Don’t do it.

Raiding your retirement funds early is a disaster on multiple levels. First, if it’s a traditional 401(k) or IRA, you’ll likely pay income taxes plus a 10% early withdrawal penalty to the IRS. You might take out $10,000 but only keep $7,000.

Second, and more importantly, you interrupt compound interest. That $10,000 you take out today isn’t just a loss of $10,000; it’s a loss of what that money would have grown into over the next 20 years. Build a separate emergency fund so your retirement savings stay locked away.

The bottom line

If you recognize yourself in this list, don’t panic. Panic leads to paralysis. Instead, take action. Start small if you have to. Increase your 401(k) contribution by 1% today. Open an IRA. Run a calculation. The best time to start saving was twenty years ago. The second-best time is right now.