I'm 35 and have nothing saved for retirement. Should I be worried?

Planning for the future is always difficult. Photo/Getty Images.

Q: I'm 35, single, and a renter, and have essentially no retirement savings. I'm not counting on Social Security, and even if I was, my payout is very low right now due to years of schooling. I make about $50,000 a year, and that won't change for the next few years. However, I am optimistic that in five years, I can get a job that will pay $70,000 to $80,000. I'm trying to plan a worst-case retirement scenario for me, which has me saving 20 per cent of my income starting at age 45 (when my student loans should be paid off), retiring at 70, and living off $64,000 a year. Using Bankrate.com's calculator, that gives me 16 years of retirement. Do you think $64,000 will be sufficient in the year 2053? What other things should I be worried about? I'm hoping that this really is worst-case and I can start saving at 40 (those extra five years give me an extra 10 years of retirement!), save more, make more, etc. I'm considering leaving my profession for one that will pay more because I'm so worried about my current state of retirement. I'm throwing all my extra money right now to paying off credit card debt — that should be done in three to four years. But if all these numbers sound reasonable to you, maybe I can keep doing what I'm doing instead of moving to a big corporation.

Answer: It's wonderful that at 35, this person is thinking that far ahead. Too many people wait too late to save and they are caught flat-footed later in life.

However, there is a balance. We cannot predict the future one year out much less 50 years out. Life can change on a dime. I ask people to take stock of their life now. Are you happy in your job and your life? Do you make enough to live on? Are you taking care of your health, and are you able to save some money? If you are hit by an illness or a bus today, did worrying about 50 years out really pay off if you didn't focus on making life great now? Do you really want to change a job that you love because some calculator said you weren't going to have enough money?

Regarding the question: "What other things should I be worried about?"

I joke that we get only so many "worry minutes" and then we die. People should focus on only what they can control and not worry about bridges that aren't even there yet to cross.

My recommendation for this reader is to focus on paying off that credit card debt and vow never to charge it back up, but at the same time, if the person has a retirement plan at work where he or she gets matching funds, at least get the match. If not, focus on the credit card debt first. Then take the money you were paying on that credit card and create an emergency fund of three months' expenses. Then all the money that was being paid to the credit card should be put in savings.

For this period of time, pay attention to where money goes so you have a better handle on what you need when you can no longer work.

Don't focus on a retirement age — if you do what you love, you should try to do it as long as possible. One of my favourite professors in college was 88 years old — she taught history and had lived most of it!

Over time, projections can be done to see how you are doing, but this should be used as a guide, not the gospel. The more important number to follow is spending — make sure it stays in check and that all spending is thoughtful use of money.

- This personal finance column was written by Michelle Singletary for the Washington Post.