1. Try to save approximately 15 percent of your salary each year toward retirement. These savings should include monies that your employer might match toward your contributions in addition to monies you invest or contribute to IRAs or other investments. Saving at this 15-percent savings rate will generally result in assets that will produce about 50 percent of your current salary.
   
2. When calculating your potential retirement income, take into account your investments, Social Security, pensions, part-time employment and other income sources such as rental property.
   
3. If you think you’re lagging behind, try to increase your annual contributions above 15 percent and consider putting annual raises, bonuses, cash gifts or inheritance money into retirement investments rather than spending these windfalls.
   
4. You can avoid or defer taxes by contributing to IRAs or investing in tax-deferred annuities. Talk to a financial planner for assistance.
   
5. If you’re not satisfied with the size of your retirement nest egg when you approach age 65, consider delaying retirement for a few years.
   
6. If you work for an employer offering a retirement plan such as a 401(k), 403(b), 457, SEP-IRA or ESOP, maximize your employer’s matching funds.
   
7. If you change jobs, do not cash out of your retirement plan. Roll the proceeds over into the new company’s retirement plan or into a rollover IRA. If you’re approaching age 55 and wish to retire early and begin taking withdrawals, then leave it where it is. You can tap a company retirement plan at that age, but would have to wait until age 59 ½ to withdraw penalty-free from an IRA.
   
8. Diversify your portfolio among many asset classes. This helps you maximize your return on investment while decreasing volatility.
   
9. This is tricky, but try to determine what percentage of your current income you want to live on. Although 70 percent is sometimes given as a rule of thumb, there is no set amount, and it will vary from individual to individual. Keep in mind that although you may be able to decrease certain expenses (debts) such as mortgage and car payments, your medical bills may increase.
   
10. Finally, when you do retire, plan on withdrawing only about 4 percent of your savings during the first year. Then, give yourself a cost-of-living raise each year by increasing the amount withdrawn in the first year by 3 percent. This low withdrawal rate will increase the probability that your assets will last for 30 years.

Related Posts:

1. Planning for retirement
2. Retirement
3. Retirement realities
4. How to Set Up a Roth IRA
5. Turn Daily Savings into Retirement Riches