When does the fear of going broke outweigh the pain of saving for retirement? The answer remains a mystery if you read the latest report from Bank of America Merrill Edge. They surveyed people with incomes from $50,000 to $200,000 and the feelings expressed were similar regardless of income.

Some of the more surprising results showed that while the number one fear for more than half of the respondents was “running out of money in retirement” over a third of those who feared running out of money said that still they are not willing to cut back on entertainment to save more (eating out and vacations included). 63% said that having money to live “in the here and now” is a priority.

If you feel guilty that if you won the lottery you might blow it on a trip to Vegas or a new car or some other toy don’t worry because 34% said they would not use their lottery winnings for retirement. Some good news is that 89% of those surveyed stated they have a household budget but…66% say they are consistently unable to live within that budget.

So getting back to my initial question, when does the fear of going broke outweigh the pain of saving for retirement? Stay tuned because there is no clear cut answer. The jury is still out. It still appears that many people have given up on the idea of retirement and will either work until they drop dead or move in with the kids if they run out of money.

There is always some good news from the confusion of these surveys. It can be different for you. If…you start right now. It takes a plan and is what most of these survey respondents do not have. Like you they may not be aware of the Red Line Solutions that may help you enjoy retirement on your terms. What are they? If you follow my blog here is a reminder. If you are new then have hope and take action:

1. Work longer, retire at a later date. Don’t forget, each year that you continue to work increases not only your Social Security benefit, if you have a pension it could increase that benefit as well. It will also allow your retirement investments to continue to grow (401(k), IRA accounts, and taxable investments).

2. Work a second job or part-time after retirement. The first step is to figure out what your income shortfall will be and then you can start considering the type of part-time work you will need to supplement your other sources of income in retirement.

3. Reduce monthly expenses. Yes, this can be a painful process but in many cases it will be necessary. This is why the budgeting step is so crucial. You don’t know what needs to be reduced if you don’t know what you are spending. Check out my Budget Tracker tool to get started. Most retirees don’t need to live on their pre-retirement standard of living. It will probably be somewhere between 70-80% of what you are spending now. Once you have your budget you can figure out what can be reduced or eliminated.

4. Increase the contributions to retirement accounts. Use the power of compounding and time to work in you favor. Even a small increase of $50 to $100 a month can have a dramatic effect on your retirement savings depending on how long you have until retirement.

5. Sell an asset. Again, probably a tough decision. Maybe not, if that vacation home is going unused now that the kids have grown and are not as interested in using it as they were once upon a time. Or maybe you want to downsize and get a smaller, less expensive home or move to a part of the country that is less expensive than where you live now.

Take action and have a plan. Don’t let survey results justify bad financial decisions or discourage you. Your situation is unique and you can retire on your terms. Please let me know how I can help you.

Time Out! What money concerns keep you awake at night? You can leave a comment here.