As people reached their middle age, they may start thinking whether they are able to save enough money for their retirement. Many people even have planned early of saving for retirement as there are many uncertainties could happen.

When you think of the bills coming up and you do not know whether you are able to pay them, you start to panic and begin to save even more. Economists have debate recently about whether Americans are saving too much for their retirement. This may cause by the local financial services to encourage people to save more for their retirement.

Financial services providers are sacring investors so that they can make profit from managing their money.

If financial service providers are no longer trustworthy, how do people know exactly how much they should save for their retirement? Here are two steps to determine whether you are saving too much for your retirement.

Step 1: Determine your desired lifestyle after you have retired

People may have different requirement for their living standard. Some people may feel it is fine to lower their living requirement after they have retired. For example, some people may feel acceptable to buy less cloth and accessories after retirement comparing to workdays. At the meantime, some people may need more money as they would like to travel around the world after they have retired. As a result, think of what kind of lifestyle you would like to have after you have retired.

Step 2: List your monthly spending and determine how much you should save for each month

After you have determined you saving goal, you can move on to the next step which is to list your spending and determine the amount you have to save each month in order to meet the goal you set. Make sure you also take into account the interest rate as well since you can also earn interest on your savings as well.

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