Start young. Someone starting to save at a young age will be able to save a lower percentage of their income with the same result. Determine how much money you’ll need to retire comfortably and when you wish to retire, and determine the percent you’ll need to save using that. The amount of income you need will depend on any mortgage payments, car payments, and children’s’ education expenses that you’ll need to pay once retired.

If your employer will match contributions to a retirement plan, it’s recommended you contribute the full amount they will match. Contributing the maximum amount can also help defer taxes.

You can also save an emergency fund to cover 6 or more months of expenses, to help you feel more secure once retired.