March 19, 2007 1:59 PM

Planning ahead
Posted by Douglas Eisenhartat 1:59 PM

A new report from Boston-based mutual fund leader Fidelity Investments provides some troubling findings about retirement planning among US workers:

The report, conducted by a new research institute of the Boston mutual fund giant. . .found the average working family today saves enough to replace 58 percent of its income in retirement, combined with Social Security and pension payments. That is far below the roughly 80 percent figure that is commonly suggested by Fidelity, other large mutual fund companies, and many financial planners.

Taken together, the figures paint a troubling outlook, said Guy L. Patton, the Fidelity institute's executive director. Though many people figure to keep working beyond age 65 to save more for retirement, many won't make it to their targets because of health problems. "The additional pressure because of health issues only makes that 58 percent even more of a problem," Patton said.

Whatever your career stage - entry-level, mid-career, or even pre-retirement - and even though the "R" word may seem like a distant, hazy, and foreign prospect to you, I highly recommend you begin thinking seriously about planning for retirement before it is too late for you, too.