Appearances can be deceiving: Why you’re not as far behind with your nest egg as other retirees would have you believe

What you see is not the full story

Social media makes it easy to see what our peers are up to. And you may be inclined to draw some financial conclusions based on what you see, such as photos from fancy vacations or kitchen updates.

Even if you're not a social media user, you might simply observe your neighbor down the block driving an expensive new car. Or you might meet friends for a social event and note that most of them are wearing fancy clothing from brands you can't afford.

All of these things might lead you to believe that you're behind financially and don't have as large a nest egg as your peers. But, remember, the type of car someone drives or the type of handbag they carry around doesn't tell you anything about what their IRA or 401(k) looks like.

For all you know, your neighbor is skipping out on medication doses or limiting themself to discounted groceries to cover their car payments. And that nice handbag may have come at the expense of being able to repair a damaged roof or replace a dying water heater.

While it isn't always the case, people who are truly comfortable with where they are financially don't tend to show their money off. You may find that it's your friends who are still driving 18-year-old sedans who have the largest net worth.

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How to know if your nest egg is the right size for you

While it’s natural to compare yourself to others — we all do it — that practice isn’t going to serve you well financially. So rather than worry about whether you have more or less money than your fellow retirees, worry about whether you have enough savings for yourself.

To see if that’s the case, create a budget based on your essential needs, but also based on the things that will provide you with a comfortable retirement. From there, tally your various income streams, savings included, to see if the numbers work.

Maybe you’d like the flexibility to see a movie once a week and take two nice trips per year. If you can swing that with your Social Security checks and savings, you’re in good shape. If you don’t have enough to allow for that, you may want to work part-time for a few years to boost your savings.

You can also reset priorities and cut some expenses to make room for your most important goals. For example, if downsizing from your house into a condo frees up money for you to travel more, you might feel that the sacrifice is worth it.

But only you can decide that. And only you can decide if you’ve saved enough and are in a good place financially. You may have a much wealthier friend who wouldn’t be able to cope with a nest egg as “small” as yours. But that’s their problem, not yours.

Of course, there’s nothing wrong with finding a financial adviser who can assess your savings and help you manage your money so you’re able to do the things you’ve always wanted. It’s a much better use of your time than comparing yourself with others.