The biggest mistake was not saving earlier, which resulted in 40% of workers being behind on retirement planning.

• A recent CNBC survey revealed that 4 out of 10 American workers are not adequately prepared for retirement due to insufficient planning and savings.
• Not starting earlier tops Americans’ greatest financial regrets.
• According to one expert, even if you accomplish less at age 30, you will accumulate more at age 60 than if you had been more productive at age 50.

Although Molly Richardson, 35, consistently contributes to her 401(k) plan, a structural engineer advises that she is not overly concerned about retirement at the moment.

She stated that it was something she always felt she could postpone determining until she turned 50.

Richardson, like many other working adults, has pressing expenses such as her mortgage, car loans, and student debt.

The mother of one, who is married, confesses that she lacks a specific savings objective after overcoming other financial challenges.

""We don't know exactly how much we'll need," she admitted."

A recent CNBC survey of over 6,600 U.S. adults in early August found that 40% of American workers are behind on retirement planning and savings, mainly because of debt, low income, or starting late.

According to the survey, a higher percentage of baby boomers (37%) felt they didn't save enough for retirement early enough compared to other generations: Gen Xers (26%), millennials (13%), and Gen Zers (5%).

According to Bryn Mawr Capital Management's director of retirement plan services, Jacqueline Reeves, a significant number of individuals, including those in their youth, mid-career, and later in their careers, are not saving enough for a comfortable and secure retirement.

By some measures, retirement savers, overall, are doing well.

In the second quarter of 2024, 401(k) and individual retirement account balances reached their third-highest averages on record, and the number of 401(k) millionaires hit an all-time high, thanks to improved savings habits and favorable market conditions, according to Fidelity Investments, the largest provider of 401(k) savings plans in the US.

The 401(k) contribution rate, including employer and employee contributions, is currently 14.2%, which is slightly below Fidelity's recommended savings rate of 15%.

Despite the gap between what savers are saving and what they will need in retirement, they continue to save.

According to Reeves, "Although many employees with a workplace plan contribute just enough to take advantage of an employer match, mathematically speaking, a 9% contribution, considering a typical 5% savings rate and 4% match, will not provide enough in that piggy bank."

"A 'standard safe harbor match' is called such for a reason," she said. "In our future careers, we should aim to save 15% to 20%."

Lisa Cutter, 56, from Terre Haute, Indiana, stated that she believes one never truly feels fully caught up.

As an administrator in higher education, Cutter took time to start saving for the long term.

Cutter stated that when he first began his career, he was a school teacher with no financial resources; he was penniless.

Cutter, a single mom, must prioritize her savings. She uses the retirement tools and calculators provided by her employer-sponsored plan to stay on track.

"I would probably like to retire around 67," she said.

The retirement savings shortfall

As Americans near retirement age, a shortfall in their retirement savings is a significant concern, according to other reports.

According to LiveCareer's retirement fears survey, 82% of workers have considered delaying their retirement due to financial reasons, and 92% fear they may need to work longer than originally planned.

According to a study by Pew Charitable Trusts, about half of Americans are concerned about running out of money after retirement, while 70% of retirees wish they had begun saving earlier.

According to a recent report by Transamerica Center for Retirement Studies, only 1 in 5 middle-class households are very confident they will be able to fully retire with a comfortable lifestyle. The middle class is defined as those with an annual household income between $50,000 and $199,999.

"Catherine Collinson, CEO and president of Transamerica Institute, stated that America's middle class is facing challenges in the post-pandemic economy and high inflation rates while prioritizing their health and financial well-being. Despite this, many are at risk of not achieving a financially secure retirement."

Not saving for retirement earlier is great regret

At 60, you'll have more than at 50 if you do less at 30, according to Bryn Mawr's Reeves.

According to a report by Bankrate, the biggest financial regret of 22% of Americans is not saving for retirement early enough.

But there's no easy way to make up for lost time.

"According to Greg McBride, chief financial analyst at Bankrate.com, inflation and high prices are the main hindrance to achieving financial goals."

There are, however, habits that can help.

How to overcome a savings gap

Through payroll deduction, direct deposit, and automatic transfers, saving for retirement can be automated," McBride advised. "Begin with small contributions and gradually increase them after a few pay periods to avoid missing the funds.

Reeves advises considering an auto-escalation feature, if available, which can increase your savings rate by 1% or 2% annually in addition to automatic deferrals.

Savers closer to retirement can even turbocharge their nest egg.

""At age 50, many people realize there are other opportunities available, as Reeves pointed out," said Reeves."

For 2024, savers aged 50 and above can make "catch-up contributions" to funnel an additional $7,500 into their 401(k) plans and other retirement plans, beyond the $23,000 employee deferral limit.

Collinson advised creating a separate savings account for emergency money to prevent dipping into retirement funds during a crisis.

To avoid potential income disruptions, it's important to stay up to date on the latest technology and training, she emphasized.

According to Collinson, the key factor is having a steady job throughout your career.

Experts suggest consulting with a financial advisor to establish a long-term plan, while the National Foundation for Credit Counseling offers free assistance.

At CNBC's Women & Wealth, we'll examine strategies for women to boost their income, plan for the future, and maximize current opportunities.

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