Experts estimate that you'll need at least 70% of your pre-retirement income to maintain the same standard of living once you stop working. For most people, Social Security alone will not provide this level of income. Some workers have pension funds that will provide additional income in retirement. Increasingly, however, workers do not have access to traditional pension plans and instead must rely on their own savings to provide for their financial needs in retirement

How can I save for retirement?
Take control and start planning now
Whether your retirement is 40 years away or on the horizon, it is important to take stock of your savings situation and take charge. Experts estimate that many Americans will spend nearly one third of their lives in retirement. To make sure that your retirement is the golden time it’s meant to be, start planning now.

Saving and investing for retirement
Just putting money aside isn't enough. It’s important to invest your savings to win the race against inflation. And the sooner you start, the longer your money will be able to grow. By investing small amounts of money on a regular basis, your money can grow to a considerable sum by the time you retire.

401(k) plans are a good place to start
Take advantage of plans offered by your employer. Many companies offer profit-sharing and 401(k) plans. In fact, more than 50 million Americans are currently participating in profit-sharing or 401(k) plans - or both. Use these plans to your best advantage. If your employer doesn't offer one, ask it to start one.

You can afford it
Saving adequately for retirement while dealing with day-to-day expenses may seem to be an impossible task. But guaranteeing your financial future can be as simple as passing up that daily cup of gourmet coffee, or eating in one more day a week. If you invest the money wisely in a 401(k) instead, that $2.75 or so a day can grow to a million dollars in 40 years.

Controlling factors
Three factors greatly affect the amount of money you'll have when you retire:

• Time is one of the biggest advantages you have when investing your retirement savings. Saving and investing early gives your money a chance to grow.
• How much you and your employer contribute to your employer-sponsored retirement plan, or how much you save on your own, determines how much money is available to grow.
• The rate of return you receive on your investments determines how quickly your money will grow. A high rate of return means that you're making a lot of money from your investments.

Ten steps to smart saving
Resources for more information on saving