As you get closer to the age where you can access social security benefits you will have the option to cash them in early or wait until a "normal" time. The other consideration is a spouse who may also be due to receive their own social security benefits?

However in any case Social Security was never intended to carry people for 30 or 40 years. There just isn't enough money in the pot. They also run the risk of changes in governmental policy which again is outside of your control.

Some experts propose 70-80% of preretirement income is enough. Each individual will have to figure that out based upon the retirement lifestyle they wish for. You also need to consider all those outstanding financial dependencies upon you i.e. your children (or your parents) and perhaps a mortgage?

However the biggest factor here is medical expense. Does your health insurance cover you well enough and how expensive will the premiums become? If you need to go into a care facility, how will you pay for that?

Most companies have some sort of plan, and if the company offers to contribute to your plan this is obviously a good incentive and should be taken advantage of. However, make sure you aware of the rules as this varies between organizations.

Also make it your business to understand how your money is allocated and what the tax implications are for you. All too often employees put complete faith in their company without having any idea what their risk exposure is.

Establish a plan that you are comfortable with and stay with it. Can you save 15% of your monthly salary? Developing a regular monthly savings plan will build up nicely over several years. The key is discipline!

Most companies simply can't afford to provide this idea anymore but offer some compensation in the form of Stock Options.

Yet some government agencies still have plans. If you are lucky to be with a company that does have such a plan, the first thing to do is learn all about it? There are still some companies or agencies where you can "retire" on full pay after only 20 or 30 years. Therefore in theory, you could "retire" in your early 50s and be paid for the rest of your life.

No matter where you are investing you should have a diverse Asset Allocation. Your risk level will be based on several factors, including age; we tend to be more conservative as we get older. For example, a 32 year old earning $400,000 a year with years left of earning power may have a much higher risk level than a 60 year old nearing retirement. You or someone should be "managing" accounts according to your particular risk level.

In light of the 2008 sub-prime mortgage crash that took the world's economy to its knees, people have become more discerning about their investments. Planning for your retirement should be given the same level of attention.

One of the biggest changes in retirement assumptions in recent years is the fact that interest rates, from bank rates to bond yields, are nowhere near their historical norms. That means it takes a bigger portfolio to produce an adequate amount of retirement income.

Another important consideration is the rate of inflation and your average rate of return on your portfolio mix if you are investing into equities.

Should you have taxable investments or tax deferred or tax free investments? A first thought may be to just have tax free investments. But it may be that taxable investments could earn more in your pocket than tax free investments…even after you pay the taxes.

This can be an overwhelming expense. Medical insurance can cover a lot, but there can be situations with no coverage. At some point we all will need some sort of long term care…because we all keep getting older. Make sure you understand the limitations of your policy and plan accordingly.

Just what is retirement these days? Hardly anyone just stops "working" completely when they hit a certain age, like 65. Some retirees supplement their retirement income with some other source of income such as a consultant in their field.