by Barry Waxller

The first baby boomer has claimed social security benefits, which should be an eye opener for all of us. Specifically, the issue is retirement planning. Few of us do enough of it as the following facts and tidbits reveal.

If your employer offers a tax-sheltered savings plan, such as a 401(k), sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy.

Start early. The sooner you start saving, the more time your money has to grow. Put time on your side. Make retirement savings a high priority. Devise a plan, stick to it, and set goals for yourself.

Women represent 58 percent of all Social Security beneficiaries age 62 and older and approximately 71 percent of all beneficiaries age 85 and older.

Today, only 42 percent of Americans have calculated how much they need to save for retirement. Have you?

The average American spends 18 years in retirement. Yes, your money has to hold out that long.

Of the 60 million wage and salaried women working in the United States as of March 2005, just 47 percent participated in a retirement plan. Remember, even small amounts can earn interest and add up over time.

To get equity out of your home, you might consider a reverse mortgage. Don’t! They are bad deals. Talk with a financial planner about other alternatives that make more sense.

Earnings compound over time, so start investing as soon as humanely possible. This is true even if the amount you are saving is small.

For the average worker Social Security replaces only about 40% of pre-retirement income, the balance must come from pensions and savings and investments.

Select a target date for your retirement. Now assume you will need 70 percent of your current salary to live comfortably on that date. How much money will you need for 18 years of retirement and where will it come from?

If your employer offers 401k plans, try to maximize your contribution. This is particularly true if they match your contributions in any way.

Retire to a warm, dry location. Areas such as Las Vegas tend to have fewer pollens and pollutants in the air, which is good for your health. Good health equals lower medical bills.

Predicting health is never easy, but it is vital to know that the government will liquidate certain of your assets to pay for medical bills it incurs in caring for you. Make sure you understand this and pay for it.

If you plan to work after your retirement age, keep in mind that you might not be able to. Why? Your health could leave you. If that happens, will you have saved enough money?

When is it too late to start saving for retirement? It never is. People starting at 50 can still save a lot of money.

If you consider playing the weekly lotto to be your retirement plan, it is time to wake up. Time will pass before you know it and you will have to be ready to retire. Save now or you will seriously regret it when your measly social security check floats in.

About the Author:

Barry Waxler is a financial planner who writes about financial planning for UFCAmerica.com. Get your own completely unique content version of this article.