My Retirement Outlook – Bright or Bleak?

According to this concerning review of American Retirement Savings by Age, the average strict (401k, IRA) retirement savings for my age (41) is $67k. The median number is scary I won’t even comment on that. I am definitely behind the eight ball as far as average with my current $42k retirement savings, but I am improving. Just two years ago I had approximately $15k. According to my current savings rate and this retirement calculator, I’m on pace to be way above average in a couple years.

However, looking at averages and comparing against averages is fun but is it really relevant? It may be much more important to calculate what will actually be NEEDED in retirement, using calculators such as NerdWallet’s or SmartAsset’s and then aim for that. This is something I’m struggling with because the numbers they come up with are quite a bit higher than what I’m currently on target for. To get on target to reach those savings goals would require stricter budgeting, greater sacrifice regarding my current lifestyle, probably an increase in income, and a significant amount of luck. When I see that list of challenging tasks before me it is very easy to say “I’ll be way above average at my current rate. How about I just shoot for a nice round $1 million number. That should be plenty!”

So as I was saying, what’s the cheapest way to survive in retirement years, cat food or rice and beans?