Jeremiah 29:11

This is from CNN.com:

The Employee Benefits Research Institute reports that more than half of workers 45 to 54 have saved less than $50,000 for retirement. A recent Fidelity study found that the average boomer is on track to replace just 60% of his or her current income in retirement, even with help from Social Security and pensions.

To have only saved this amount is sad.

How much will you need for retirement?

Here is an example:

Current annual income $50K I just picked a nice round number.

Desired post-retirement annual income: Let's say 100% as nobody wants a cut in pay
(Note: You'll need at least 70% of the amount you earned during your peak earning years for every year of retirement.)

Current age: I picked a median age of 35 years old.

Desired retirement age: Let's say 63 years old.

Life expectancy: Medicine is allowing us to live longer so say 85 years old.

Expected annual pension: Most companies don't have this anymore so say $0

Expected annual Social Security payment: $20,707 pretty sad uh!

Just 13 years from now, in 2017, the government will begin to pay out more in Social Security benefits than it collects in payroll taxes – and shortfalls then will grow larger with each passing year.
By the year 2027, the government will somehow have to come up with an extra $200 billion a year to keep the system afloat.
By 2033, the annual shortfall will be more than $300 billion a year.
By 2041, when workers in their mid-20s begin to retire, the system will be bankrupt – unless we act now to save it.

Bottom line: Don't expect the government to pay for your retirement. Plan and take control of your own retirement!

R E S U L T
You will need a total of $1,061,600 to retire at age 63. Based on the same numbers but your age is now 45 you will need $789,930 to retire at 63.

What if you want to retire at 55 like my father in law did? Well you better start putting a plan now and not later.

There are a number of financial illustrations on line to figure out how much you need. Run them and see how much you need to save each year then adjust your 401K accordingly.

If you have maxed out your 401K then open up and IRA account of some sort. Don't just blindly put some percentage into any 401k without looking at what you'll need 40 or whatever years later for retirement.

HAVE YOU STARTED SAVING?????

Best Wishes on building your nest egg.