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Do you often lose sleep, or hair, predicting the dimensions of your nest egg? Everyone recognizes the should save for retirement, but hardly any of us feel comfortable with all the amount we're actually capable of consistently invest for our future. So just how do your saving habits compare with all the average individual?

Every three years, the Congressional Research Service Department from the Library of Congress publishes data containing statistics and trends concerning American's savings and retirement patterns. It ought to be noted that the most recent information was published in May, 2006 and utilizes data collected in 2004. However, thinking about the urgency on this topic, it really is worthwhile to analyze the insights that may be extrapolated from the 2006 survey.

Only 40.8 percent of people under 35 many years of age possess a retirement account, as well as the median balance of those accounts is $11,000. Of individuals age 35 to 44, 56.7 percent have a retirement account along with the median balance is $30,000. Only 58.5 percent of individuals ages 45 to 54 have a very retirement account, which portfolios use a median balance of $60,000. Lastly, 63.5 percent of people ages 55 to 64 use a retirement account, and the median balance of the accounts is $88,000.

While many could possibly be astonished at the reduced percentage of households that contribute to your retirement plan, and the reduced average account balances that Americans will count on for support throughout retirement, there is an equally shocking and alarming trend that is certainly not conveyed in the above table. The overall number of households that maintain a retirement account actually diminished to 50.2 percent in 2004 from 53.4 percent in 2001. Thus, by one unfortunate measure, any person that currently contributes to some retirement account is ahead with the curve.

So how good prepared for retirement may be the typical American? Let's look at a 65 year-old retirement account participant having an balance of $250,000. According for the National Vital Statistics Report published with the Centers for Disease Control and Prevention, a 65 year-old individual should expect to call home another 18.7 years. Assuming an investment return of 10 percent (near average for your S&P 500 since inception) and inflation of 3 percent, the retiree's household will provide an inflation-adjusted income of $24,012 throughout his or her lifetime expectancy.

Before analyzing whether an inflation-adjusted annual income of $24,012 is gonna be enough to guide your family, consider that our hypothetical retiree's nest egg is completely invested inside a market index. Traditionally, financial planners would recommend that individuals continually shift a bigger proportion (as up to 80 percent) of their retirement dollars to less risky investments as they age because retiree's investment horizon is way too short to endure the vast fluctuations the stock exchange often experiences. Less risk equates to less return. Thus, decreasing the proportion of your respective investments inside stock trading game (reducing risk), although sound financial planning, will reduce the expected return. Additionally, this retirement account will give you no income past the retiree's life expectancy, and when the individual lives any over 18.7 additional years, there is going to be no funds left in the account to pay for funeral expenses or pass to the retiree's heirs.

Sound just like the plush retirement you were hoping for? Fortunately, it's never too late to beat the averages. With the wide array of IRAs, 401k plans, as well as other tax-advantaged investment vehicles available, investors have ample possibilities to invest for any bright future. Consult your financial advisor to have started or give your retirement investments a shot within the arm. Wise decisions now could even enable those hair implants to get a reality, or a minimum of allow you to sleep more soundly.