don't get left broke
From the time you graduate to the time you retire, you'll have earned nearly one thousand paychecks. That's one thousand opportunities to save and invest for your retirement. So how many checks have you put away for your future?

None you say? Well, you're not alone. Nearly seven out of ten Americans in their thirties still haven't begun to save up for their golden years.

Now don't get all worried, or start jumping around the office screaming, "I can't believe I forgot to save for retirement!" Most people in their twenties and thirties have other things on their minds besides retirement like car payments, paying off that hefty student loan, or their monthly rent. But that doesn't mean you should wait to the last minute to start saving.

start today

As we get older and wiser, we realize that we must save for retirement. If you've procrastinated in planning for it, you may not be as far behind as you think, so long as you have a good idea of how much you'll need for retirement.

In order to know exactly how much money you'll need to save up, you'll need to estimate three important factors: (1) age of retirement, (2) how long you plan to live, and (3) annual funds required after retirement.

1. Your age of retirement
Most people dream of retiring by the age of 55, but the reality is that the average individual ends up taking their retirement by the age of 65. So to be on the safe side, you should plan your retirement for 60, keeping in mind that it will most likely be at 65.

Assuming you're currently 30, this leaves another 30 years to save up for your retirement. And if you feel that you still have not saved enough by the time you hit 60 years old, you still have a buffer of 5 years to add to the golden pot.

2. Estimated lifespan after retirement
The number of years you plan to live after retirement will also affect how much money you need at retirement. Obviously, you won't need nearly as much if you plan to live an additional 2 years past retirement, unlike someone who plans to live until 100.

The important thing to remember is that you shouldn't underestimate your lifespan, because you don't want your bank account to run dry while you still have another 10 years to live. So to be on the safe side, let's assume you'll live until 90 years of age. This means that if you plan to retire at 60, you'll need a cash reserve (cash account, treasury bills, bonds, stocks, mutual funds) large enough to last you 30 years.