Retirement is a dream for many people. It frees up your time so you can do things you may have put off during your working life, such as traveling or buying a vacation home. But, all of this costs money.
While the rule of thumb has generally been to save between 70% and 80% of your pre-retirement income (remember, that’s just a suggestion) to accomplish your goals, many Americans still find trouble saving money for their nest egg.
Here’s what financial advisors suggest to get you closer to your dream.
Key Takeaways
Experts suggest saving 70% to 80% of your pre-retirement income for retirement.Almost half of the U.S. population doesn’t have retirement savings. Plan and save for leisure and recreation by understanding the costs and narrowing your focus.
How Much Are People Saving?
Over 54% of Americans are prepared for retirement, with most using employer-sponsored plans like 401(k)s and 403(b)s to save for the future. In January 2025, Empower reported that the average American’s retirement savings balance was $492,795. Those in their 60s were reported to have the highest balances at an average of about $1.2 million.
But, most savers aren’t taking full advantage of the retirement options available to them, according to Pam Horack, certified financial planner (CFP) at Pathfinder Planning in Lake Wylie, South Carolina. “Many of them don’t maximize the savings they can make here and have little other savings outside of that,” she told Investopedia in an email.
Having some retirement savings is better than nothing, though, especially when you consider that 46% of Americans reportedly had none at all. This can be troubling if you want to retire, as experts say that you shouldn’t rely on Social Security alone to achieve your goals—especially if you want to include leisure and recreational activities into your lifestyle.
Note
Consider tax-free income sources, such as a Roth IRA, cash-value life insurance, and municipal bonds, to supplement any other investments you have for your retirement nest egg.
How to Afford Leisure During Retirement
Some of the most common things people say they want to experience after they retire include buying a vacation home or recreational vehicle, traveling, and taking up different hobbies. Make sure you understand the associated costs so you’re prepared ahead of time (remember: these costs are likely to change):
Vacation home
$340,000 to $928,900
Recreational vehicle
$20,000 to $100,000 (towable); $50,000 to $600,000 (motorhome)
One week vacation in the U.S.
$3,971
One-week vacation to France
About $3,800
Photography (beginner to advanced setup)
$500 to $4,000
Gardening (seeds, tools, soil)
$2.80, $100, $534 to $2,400
You should be as specific as possible so you can plan and make realistic savings goals, according to Horack.
For instance, if you’re interested in travel, she suggests narrowing down where you want to go (domestic or international), whether you want active vacations or sightse