Perhaps you've heard that you should save 10% of your paycheck for retirement. While 10% is a reasonable figure, much depends on other factors including your current and projected retirement ages and your goals for retirement.  Indeed, people who start to seriously save for retirement only later in life and/or who lack a defined benefit pension may need to save significantly more than that.  Yet various studies show that simply doesn't happen for the vast majority of individuals. With that in mind, I have a question for you to consider today:

Maybe you're looking forward to driving home from work for the last time.  Perhaps you've visualized telling your boss to take this job and - well, you know.  The only thing standing in your way is the financial wherewithal to stop working.  Imagine that day has come.  What do you do the day after? How will you spend your time?  While some people may enjoy the lack of any structure for a period of time, others may tire after a few weeks. Before hanging up the work clothes for good, be sure to Consider How You Will Spend Your Time During Retirement. It's part of the Top Steps Before You Retire series - a must read for retirement preparation.

^{Photo from Getty Images/Diane Macdonald}

Thanks to compounding interest, those who begin saving early in their careers can reach retirement with far more money than those who delay. Furthermore, and adding insult to injury, the early-birds often don't need to have saved nearly as much money as those who wait.  Don't blame anyone - it's just the way the numbers work.

I was thinking about this the other day and began to wonder about my readership here. After all, I suspect this is a pretty motivated group - choosing to read a retirement planning blog and, perhaps, subscribing to my newsletter.  But who are you, really? Are you an individual who is trying to play catch-up and sees knowledge as a way to shorten the time needed to close the gap (it should) or are you some over-motivated person well on his or her way thanks to an early start but seeking guidance to ensure you don't go astray (also a noble cause).

To the extent people prepare for retirement, most focus on the amounts they have saved.   But, as the Top Steps Before You Retire series illustrates, other significant factors play a roll.  Part three of the series focuses on insurance considerations during retirement.  Are you retiring before age 65?  If so, are you aware that while you can get early retirement benefits from Social Security, Medicare still won't cover you until 65.  Now ponder your health insurance needs.  See why looking at your insurance coverage during retirement is really important?

Who learned this the hard way?

^{Photo from Getty Images/Diane Macdonald}