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Saving More for Retirement

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For many, retirement seems more like a dream than it does a reality. But if you do see retirement in the near future, you'll want to consider one big factor.

People are living longer. More so than they did two decades ago and that has some financial planners, like Ernie Wright, urging people to save more money for retirement.

For years it's been suggested to save about 70 percent of your salary to make it through the retirement years. But now financial analysts say health care cost and assisted living should be calculated into the equation.

“There’s an argument that everyone should have a long term care policy if they don't have enough saved up to take care of that. It could be $4,000 to $5,000 more a month," said Wright.

Wright says a person's living habits and health conditions will determine exactly how much money they'll need to have a comfortable retirement. Studies show that people don't spend as much past the age of 75, but that's when medical expenses can come in to play.

"Retirement income is usually a 3 legged stool. Social security, employer provided benefits, and individual savings and without one of those legs, it usually doesn't hold up," said Wright.

Wright says there is still time to catch up on your retirement savings. You can always add more to your IRA or 401 K, and make some smart investments.

"The younger you start, the better off your going to be," said Wright.