Tips to save for retirement

"If you would be wealthy, think of saving as well as of getting."--Ben Franklin.
Are you afraid that you won't have enough money saved for retirement? You are not alone: in a study commissioned by Merrill Lynch, 77 percent of baby boomers believe they are setting aside too little for their retirement.
The best way to a financially secure retirement is to save steadily throughout your lifetime.
But says Suzanne Boas, president of Consumer Credit Counseling Service, "Even if your retirement is fast approaching, you should get in the habit of saving now."
Boas points out that with compounding, your savings can grow quickly. For instance, a $50,000 lump sum invested at ten percent will grow to $100,000 in about seven years and to $200,000 in less than 15 years.

To help consumers save, CCCS offers the following tips:

Keep your eyes on the prize. Regularly remind yourself of why you are saving. You should save for both medium-range goals (a vacation, a new car) and long-term plans (a down payment on a house, college tuition, retirement). Post a picture of your dream house on the refrigerator for inspiration. Congratulate yourself as your bank or investment balances grow.
Pay yourself first. one of the first rules of saving money is to pay yourself first. Write a check to your savings account or have money automatically transferred from your pay check. If your employer offers a 401(k) or other pre-tax retirement plan, contribute the maximum; most employers will match a certain percentage. You can also make automatic investments to many mutual fund companies.
Keep paying loans. You may currently have a monthly loan payment. once you have paid off the loan, continue to make the same regular payments to your savings or investments account.
Put away unexpected money. When you earn a raise, receive a refund or cash gift, win a bet--invest the money. You know you can get by without it now, and the money will be worth even more later.
Adjust your withholding tax. Make sure your W-4 form is filled out to your best advantage. It is better to have a little extra money each pay period than to wait until tax time to get your refund. But put that extra money into savings!
Put your money to work for you. You should have the equivalent of about three months' worth of expenses in a savings account. Any additional money should be invested or put into a CD or other high-yield investment.
Reduce monthly fees. A monthly bank checking account fee of $10 adds up to $120 a year. Eliminate services that you pay for but don't use, such as call-waiting or premium cable channels.
Cut corners. If you save $20 a week by bringing your lunch to work, put $20 into savings. Same with clipping coupons at the grocery store. Going to a movie? Catch the matinee with discounted prices and make a deposit of the difference in your savings account on the way home from the theater. The entire family can make a game of looking for ways to reduce expenses, particularly if you are saving for a vacation or other item you all want.