The axiom 'Fail to plan, plan to fail' can put people on the defensive, especially when considering saving for retirement. But it can be a motivating thought, too. What does it takes to retire without significantly giving up the quality of life to which you've become accustomed? Planning.

Many of us plan to retire at age 65. How long can we expect to be around after that? Current IRS and Social Security mortality tables would say your life expectancy is about 79 if you're male and 84 if you're female.

Let's say you female, are an office manager at a small business, and earn $50,000 per year, which is within the median salary range for Maine. If you are 50 and want to retire at 65, how much should you be saving to maintain the lifestyle to which you are accustomed. How will you save in order to be spending in retirement approximately what you spend now every year?

First, a little about the average savings held by families. Americans are lousy at saving money. According to statisticbrain.com, families in this country have saved $4,220. Almost one quarter of U.S. families have no savings at all.

But let's suppose you have the average amount, $4,220, in your savings account. You are also now socking away 10 percent of your gross wages, or $5,000, each year. Add one more element: Social Security. Once retirement kicks in, your social security is estimated to be $2,000 a month at full retirement age.

According to the AARP on-line retirement calculator, you'd need to save $379,000 by the time you retire at 65. Your current financial set-up, however, projects that you will only have $146,000.

That's not enough.

You will start falling short of expenses at age 72 by $11,000, then $26,000 at age 73, and the number increases from there.

If you increase your current annual savings to $6,500, the maximum IRA contribution for those 50 and older in 2016, you put the shortfall off just four years to age 76.

What's the lesson in all of this?

Start saving for retirement as soon as you can, as much as you can.

Or, in the above scenario, plan to live on one-third less in retirement than you are living on now, which could mean a significant impact on your quality of life.

Or, plan to work longer.

See a financial advisor who can help you evaluate your particular situation and circumstances, and help you make a plan to allow you to work your way from a successful career towards a successful retirement. Because you want to have great Golden Years.

Sarah Ruef-Lindquist is a lawyer and former trust officer who works at Allen Insurance and Financial in Camden, where she  assists in the areas of endowment building through planned giving, wealth management and estate planning with special attention to women's planning needs. The Financial Advisors of Allen and Insurance Financial are Registered Investment Advisers and Investment Adviser Representatives with/and offer securities and advisory services through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser. 

References:

(mortality) https://www.ssa.gov/OACT/STATS/table4c6.html

(retirement caluclator) http://www.aarp.org/work/retirement-planning/retirement_calculator.html#/your-retirement-income

(average savings) http://www.statisticbrain.com/american-family-financial-statistics/