<p><img src="https://static1.businessinsider.com/image/6063315e67187800184ad43b-1885/GettyImages-1282179800.jpg" border="0" alt="tax deadline" data-mce-source="Marko Geber/Getty Images"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>Saving too much for <a href="https://www.businessinsider.com/personal-finance/practical-retirement-tips-no-one-wants-to-hear-2021-7" target="_blank" rel="noopener">retirement</a> can be a bad thing, though it's not all that common.</p><p>"An overwhelming majority of people either are saving enough or <a href="https://www.businessinsider.com/personal-finance/ways-to-increase-retirement-savings-2021-4" target="_blank" rel="noopener">not saving enough</a>," says financial planner Brian Walsh of <a href="https://www.businessinsider.com/reviews/out'u=https%3A%2F%2Fwww.sofi.com%2F" target="_blank" rel="noopener">SoFi</a>. "It's very rare that someone's actually saving too much for retirement."</p><p>However, if you're saving too much, there are two sure signs.</p><h2>1. You're consistently going over the annual contribution limits for your accounts</h2><p>If you regularly over-contribute to your retirement accounts, you might be saving too much for retirement, says financial planner Michaela McDonald of <a href="https://albert.com/" target="_blank" rel="noopener">Albert</a>.</p><p><a href="https://www.businessinsider.com/personal-finance/roth-ira-traditional-ira-income-limits-2021-2020-10" target="_blank" rel="noopener">Tax-advantaged retirement accounts have limits</a>, only allowing savers to contribute a certain amount per year. For 2021, the limit on an IRA is $6,000, and $7,000 for those over 50. For 401(k) plans, the limit is $19,500 per person, per year.</p><p>Walsh says it's all about balance, and not contributing only to limited retirement accounts. "It's great to <a href="https://www.businessinsider.com/personal-finance/save-enough-now-to-retire-in-10-years-2021-6" target="_blank" rel="noopener">save for retirement</a>, but a lot of these retirement accounts have restrictions on when you can access the money without paying taxes or penalties," Walsh says.</p><p>Especially if you decide to retire early, saving in accounts that aren't dependent on your age is critical. "It really reduces your flexibility down the road," he says.</p><p>Contributing too much may mean that you might have to pay a penalty or take money out. And that might be a sign that you're saving too much.</p><div><!-- place this once in the document head --> <script type="text/javascript" src="//www.nextinsure.com/listingdisplay/loader/sh"></script><!-- place this div wherever you want the ad unit to show up --><div id="qsWidgetContainer"></div> <script> var matchingConfiguration = { "src": "665931", "trn_id": Math.random().toString(36).substring(2) + (new Date()).getTime().toString(36), "var1": "", "inventorytype": "multistepwidget" }; //the widget will be loaded into a div with id="qsWidgetContainer". sh.initialize(matchingConfiguration, "qsWidgetContainer"); </script></div><h2>2. You're not meeting your other money goals</h2><p>If you're over-saving for retirement, it might mean that you're having trouble keeping up with your other goals.</p><p>"More commonly what we see come up is [people] ignoring all of their other saving goals and only saving for retirement," says Walsh. Short-term goals, like buying a house, taking a vacation, or starting a family, don't always make sense to sacrifice for retirement.</p><p>Instead, both financial planners recommend focusing on doing the things you're only able to do now, even if it means saving less for later on. "Maybe you're putting off having a child, or you're putting off moving into a bigger home that can fit your family because of your retirement worries, that's a little bit of a red flag," says McDonald. "You want to build a good life for yourself now and enjoy it."</p><bi-shortcode id="related-content-module" class="mceNonEditable" data-type="more-personal-finance-coverage" data-sheetname="More Personal Finance Coverage">Related Content Module: More Personal Finance Coverage</bi-shortcode><p><a href="https://www.businessinsider.com/personal-finance/signs-saving-too-much-for-retirement-2021-7#comments">Join the conversation about this story »</a></p>
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