How Much Should You Save For Retirement?

Are you saving for retirement?  If not, putting it off can cost you in the long run. 

Retirement planning didn't hit home for Almaria Anderson until she turned 40. 

"When you get 40 you really start thinking," Anderson said.  "Is there something you could have done differently between 20 and 40? Yes. What?  I could have started earlier?" she added.

Now at 60...."I've been working with the school district for about 13 years," she added.

The former long term substitute turned teacher's assistant for the Little Rock School District feels somewhat comfortable with her retirement savings.  But Anderson admits, had she begun saving up for her future many years ago - while working as a clothing inspector for 16 years - her financial portfolio today would be much stronger.

"I plan to retire at least by 68, 69, close to 70," she said.

Like Anderson, more Americans are working longer and retiring later-- because they don't have enough saved.   A new survey from the Employee Benefit Research Institute shows only 18% of workers polled were very confident about saving enough money for a comfortable retirement. That's down sharply from 27% in the previous year.

"We really do need to educate ourselves on it and start early.. don't be afraid to know what's what.. and don't be afraid to invest your money," Anderson said.

In fact, this mother of two has discussed the importance of financial fitness for the future with her two sons. As a general rule, your retirement savings - including social security benefits and pension - should be about 80% of pre-retirement income.   

Here are some other things you need to know to plan for retirement. 

- Save early and often-- how much you save matters far more than what you invest in. 

- Spread money around-- by choosing a combination of stocks and bonds... you'll be aggressive - but not too risky.

- Limit company stock-- never put more than 10% of your money in your employer's stock.

- Check in once a year-- tapping into your 401(k) could cause you to end up doing more harm than good.

- Keep your hands off-- don't touch the money when you change jobs.  You can roll over the funds into a new 401(k), keep the same one-- or roll it into an IRA.