The sooner you start, the more time you have to build up your retirement nest egg. Only withdrawals will ever be taxed and by the time you are retired, it is very likely that you will be in a lower tax-bracket and income tax will be lower with announced reductions. Keep an emergency fund of liquid assets that will cover your expenses for 3 to 6 months. It is not unlikely that you retirement years will be longer than your active working years. To get a handle on how long you may live, try our Life Expectancy Calculator .
Life expectancy is based on existing statistics for the average population.
If you're healthy and take care of yourself, you should add at least five years to this number. If your family has a longevity history, add even more. And don't forget, that the advances in medicine and a better quality of life will extend life even further in the future. Retirement will be long, varied and fulfilling. Financial preparation for this long period of our lives must be at the top of our priorities.