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For most Americans who have not started planning for their retirement,individual 401k plans seem like a "good bet". A flaw in this approach is the investor's reliance on employer matching for the plan. This could cause an employee to rely too much on the employer and not contribute enough to savings. Nothing will give you a wake up call like using a retirement calculator. You can find them on the internet from a variety of places. Retirement planning is hard, and it isn't something you just throw together haphazardly.

Even if a professional financial planner is helping you, the financial planning process is hard. There are a lot of variables. The age you want to retire at, when you start saving money, how much you save, and the interest rate you earn are just some of the many considerations you have to think about. One of the biggest concerns may be your health when entering retirement and how long you live after you retire.

Perhaps the most difficult thing to plan for is inflation. Inflation is caused by Government printing currency. Because that changes from administration to administration, it's hard to predict what policy will be 20 or 30 years from now. On the internet there are dozens of retirement calculators available, and there is a lot of information and ideas on how to plan for this. Some of them seem more plausible than others. In as far as retirement calculators go, what most of them will show you is that you simply cannot rely on Social Security. Even if you do, you will still need to save a substantial amount of money just to maintain something resembling a pre-retirement standard of living.

The economy will probably recover, and continue to grow. However with inflation at anywhere between three and five percent, you are going to be gaining and losing value in your investments based on how much your savings is being eroded.

$50 a week used to be a "normal" wage. Even during mid-life that level of income had increased to $200 a week. Now, however, you would not even think of trying to live off of $200 a week, let along $50/week.

Average Americans making $500 to $1,000 per week today will see the same kind of results that their parents and grandparents are seeing now, unfortunately. The retirement calculators are showing that they should have a retirement nest egg of close to a million bucks if they want to retire comfortably for 20-30 years.

An online calculator estimated that an adult starting with $100K and adding $4,000 year to that would retire with almost $900,000 but end up broke by age 85.

An essential part of managing your existing income is setting aside and investing funds for your retirement. Despite the difficulty of estimating your retirement income and expenditures, there is a wealth of assistance available on the internet to get you started, and professional advisors ready to help when needed.