We can't predict the future, but we can help you learn from the past, including the errors people have commonly made with their retirement planning and savings. Saving too little. The answer depends on factors such as how many years until you retire, how much you already have in savings and pensions, what kinds of expenses you foresee in retirement, and the impact of inflation on your future buying power. There's even low-cost, interactive computer software available that does the calculations for you. If you find these worksheets confusing or intimidating, ask a trusted friend or advisor to help.
Most families can do that if they make savings a priority and keep debts and spending manageable.
Starting too late. The sooner you begin saving, even with relatively small amounts contributed year after year, the faster you can develop a solid retirement fund. Unfortunately, too many people delay saving for retirement until they meet other goals, such as saving for a child's college education. He says some families solve the dilemma of whether to save for college or retirement by deciding early on to send their kids to a state school or to take out student loans. If you're still nervous about committing dollars to long-term savings, keep in mind that, under certain circumstances, you can borrow from your retirement savings accounts or withdraw money without penalty.