Ready, Set, Retire

You became a retirement saver the day you collected your first paycheck. The proof is on your statement - labeled "FICA". But Social Security itself never has, and never will help you afford the "good life". Social Security was designed to be an income supplement only.

Pension plans and savings investments are key in retirement planning. How large a nest egg you ought to have partially depends on how many years you can expect to live as a retiree. How much you can amass in advance depends on how long and how much you have to invest and how successfully you do it. Other factors include: investments you've already made, IRA accounts you've established, 401 (k) accounts you participate in, all assets which grow in the years to come.

Source: Schiffres, M. & Knestout, B. (1999). How to invest for retirement. Kiplinger's, p. 80.