It is a common dilemma when one must decide if they should stop funding their retirement to focus on paying off debt.  There are very few circumstances where high interest or interest of 9%-12% debt shouldn’t be top priority.  Double digit interest is very difficult to deal with.  If you are dealing with high interest debt, it’s most likely because you haven’t been living within your means.

If we are able to get our interest rate down in to the single digits, we must decide if it is a good time to make retirement a priority or not.  If you decide to fund retirement, you stay in debt longer and pay more interest.

There are a couple other situations where investing may make sense. Consider the following:

First, you only have a specific limit per year that you can contribute to a Roth IRA. (This is currently $5,000 per year — $6,000 per year if you’re 50 or older.) Once you miss the window of availability, you’re out of luck. Your new contributions go toward the current year’s limit. You can’t go back and make up contributions you missed for the past two years once you are out of debt.

Second, if you don’t have the discipline to actually apply any new money to accelerate your progress on debt, then don’t halt your retirement. Decreasing your contributions only to spend the difference at *your vice of choice* may be the single dumbest financial move you can make.

There’s no single answer to this dilemma.

Everyone’s situation is different.  Consider all your options. Don’t continue making a certain decision just because it’s what you’re doing right now.

Start from a blank slate. Could you benefit from a singular focus? Are you willing to make further lifestyle cuts to increase you current contributions?  Examine your options and consider the choices.

Most Americans are not saving nearly enough to fund their retirement