According to the 2007 Employee Benefit Research Institute Retirement Confidence Survey*, roughly 4 in 10 workers have taken the time and effort to complete a retirement needs calculation, with the percentage for 2007 being 43%.

• Where to Begin
  Ensuring that you will have enough income for the kind of retirement you've always dreamed of will take some forethought and effort. There are some critical questions you need to answer about retirement costs, Social Security benefits, and more.

• Effects of Taxes and Inflation
  When estimating retirement expenses, or for any long-term goal, it is very important not to overlook the effects of inflation and taxes. When you combine inflation with taxes, the results can be devastating.

• How Much Money Will You Need?
  A good place to start is by taking a look at your current income. Make adjustments to your current income to reflect the lifestyle changes you expect to experience after you retire. Consider that health care costs may go up, you may want to increase your recreation budget, or you may no longer have mortgage payments or need to put as much into savings.

• The Cost of Procrastination
  Procrastination costs money. It simply doesn't pay to put off your financial goals. In this hypothetical example,** let's assume that one person decides to invest $100 per month at 8%. Another person waits 10 years and then begins investing. In 20 years, the difference between the value of our two investors' accounts will be over $40,000! Our prudent friend will have over three times as much money as our procrastinator.

Try the Retirement Savings calculator to help you estimate the level of savings you need. Bear in mind that roughly calculating the cost of retirement is only the beginning. By starting now, you can make your retirement everything you have dreamed.