Retirement provides freedom from the routine bounded job, but at the same time, it also introduce the fear for the future as regular income stops coming. Retirement planning has to start from the day one steps in the job. And, determining retirement money is one of the critical steps when one begins retirement planning as one cannot survive only on the company's pension plan, and Social Security. It's a great idea to save money for the life after retirement as it not only brings a feeling of security, but it also enables an individual to continue enjoying his life.

But, how much money one need to save highly depends upon the kind of lifestyle an individual wants to enjoy and lead. There are other factors that determine retirement money such as number of years left in the job; other sources of income after retirement; investment returns; increasing inflation rate; and more.  One needs to be realistic when projecting the retirement expenses and one can learn from the examples of others, but it is better not follow their example to the T. The day an individual decides to start planning for the retirement, he, or she, needs to sit down and document every saving, the amount that need to be saved, investment plans, and more.

Investment is a crucial aspect of retirement money, and tax-advantaged savings plans such as 401(k)s and IRAs are a great to way to increase retirement income. Additionally, one can invest in stocks and create a long term stock portfolio. It's better not to invest heavily in bonds as due to inflation, the interest payments of bonds may gradually shrink. It's a good idea to maintain a portfolio of both stocks and bonds. One must not forget to stack-up money for health-care; in old age, most of the health related complications arise.