Today people are living longer and longer. If you reach 60 in relatively good health, odds are high that you’ll live another 30 years or more! Nearly 30 percent of men who are now 65 are expected to reach 90. Actuaries tell us that 40 percent of 65 year old women will reach 90.

What seems like old age now is likely to feel like "mature middle age" when you get there.

So, don’t under-prepare for retirement. Make hay while the sun shines. Set aside enough during your working years to allow for a looooooong retirement.

2. How much will I need in my retirement years?

Yeah, I read the same stuff you do. Lots of "advisors" tell us that we’ll need about 70-80 percent of our pre-retirement income after we’ve taken home the gold watch.

I have an academic response to this: Hogwash! Who say’s you’ll only need 70 percent of what you were making before retirement? Maybe you will. Maybe you won’t. Sure, if you had a fabulous pre-retirement income and you have everything paid off, and all the kids and their related expenses are gone, 70 percent of what you’ve been making could be enough.

However many retirees find that they spend more than they had expected. This is especially true if you hope to travel or do mission-related work. Also, grandkids have a nasty habit of expecting birthday and Christmas gifts. And, most insidious of all are medical costs. As we get older it costs more to stay healthy. Lots of retirees are stunned by how much they spend on prescriptions and out-of-pocket doctors’ bills.

3. How long will my money last?

It frightens me when I hear radio show hosts advising people that they can safely withdraw 8- or 10-percent of their savings per year. They base this assumption on the fact that stocks have historically averaged a little over 10-percent annually. While that is true, it doesn’t take a bunch of other variables into consideration.

My study has convinced me that such assumptions are dangerous. Sure, things might go great and you might be able to withdraw 8-percent or more each year—and never run out of money. But I wouldn’t bet my future on it!

Many conservative investment advisors agree that a 4-percent annual withdrawal rate may be far more realistic. Studies indicate that at 4-percent, you may have about an 85-percent chance of not running out of money in a 30 year period. At this rate you would probably be able to adjust for inflation.

This means that if you want an annual retirement income of $40,000, you will need a million dollars in the piggy bank. I know it sounds like a lot of money, but if you start early, stay focused, and follow a good plan, you may find that a million dollar goal is very doable.