Pay yourself first. Write a check to your savings account or have money automatically transferred from your paycheck. 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.
Put away unexpected money. When you earn a raise, receive a refund or cash gift, win a bet, invest the money. The money will be worth even more later.
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.
"At that time, I cashed it out because, then, you're not even thinking about retirement," said Smith, 51, who left a sales job at a private company four years ago to take care of his son, Tommy, 5, who has Down syndrome and other health complications.
Fewer than 20 percent of households have contributed to an individual retirement account, or an IRA, according to a recent survey by the Investment Company Institute. It also found only 6 percent of people 50 or older made "catch-up" contributions to their accounts.
The baby boomer generation, the 77 million people born between 1946 and 1964, are expected to have to depend heavily on their own savings because of Social Security's waning ability to support people 65 and older.
Thomas McAvoy, a financial adviser for Dime Investment Services in Norwich, Conn., said baby boomers face several obstacles in saving for retirement, including paying for the high cost of housing in some parts of the country, health care costs and their children's college educations.
"Americans are not great savers," Kanter said. "It's probably not in the forefront. They think Social Security will take care of them and the 401(k) will take care of them."
The U.S. Commerce Department reported the 2006 savings rate was a negative 1 percent, the lowest in 73 years. This means Americans either dipped into their savings or borrowed to finance purchases.
"We're a generation of spenders," said McAvoy, 47. "I think that society, today, we're bombarded with so many things that we're enticed to purchase. There's just so many things we see and are aware of today."
Lynne Cassidy, 44, of Griswold, Conn., and her husband, Michael, pay for the college education of their daughter, Melissa, who is in her last year at Eastern Connecticut State University.
Cassidy has been part of the pension plan at the Thames Valley Council for Community Action, where she works as a fiscal manager, for 20 years. She also has a 403(b) account and has had an IRA for 14 years.
Salvatore Tocco, a financial adviser for Dime Investment Services, said people may not realize they may need to spend as much as $295,000 for medical care during retirement, and that their health may not always be good.
Smith and his wife, Alicia, 44, an art teacher, started investing in a moderately aggressive mutual fund about 10 years ago. Alicia also is covered by a state pension plan and contributes to a 403(b) account.
Alicia, the sole breadwinner in the Smith household, said she tries not to worry too much about their future. Michael plans to begin working again when their son gets older and becomes more independent.
"I think we're in good shape right now," said Alicia, who plans to retire in 2020. "I think we're doing the best we can to save for our future."
But planning for retirement isn't simple. McAvoy said several variables are considered before a person can figure out how much he or she needs to retire. Those factors partly include whether the person has a pension plan through work, what their medical needs are and if the person owns a home.
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