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early a third of American workers have not saved anything for retirement, according to a recent national survey by the Employee Benefit and Research Institute. Of those who have begun saving, the majority have not calculated how much money they will need after they stop working. Part of a good retirement savings plan should include knowing which pitfalls to avoid. Some common traps:
 Overestimating your pension and Social Security benefits. Financial planners suggest that you'll need about 80 percent of your preretirement income to maintain your standard of living in retirement. But the U.S. Treasury Department estimates that only 38 percent of a retiree's income is likely to come from Social Security and pensions. The balance must come from personal savings and investments.
Assuming your medical costs will be paid. If you plan on early retirement, keep in mind that Medicare benefits don't start until you turn 65. Even when you are eligible, Medicare is estimated to pay less than half of health care bills, so you may need supplemental health insurance to fill the gaps.
Underestimating the effects of inflation. If inflation rises at only 5 percent per year, your living costs will double in less than 15 years. To stay ahead of inflation, the best strategy is to factor in the effects of inflation on your retirement assets. You may want to consider adjusting your portfolio to include growth investments that have the potential to exceed the inflation rate.
Thinking it's too late to start investing. It's never too late to make -- or adjust -- a financial plan. If you'd like some help in charting your course, look to LaSalle Financial Services. Our investment representatives can help develop a portfolio to meet your needs, no matter what stage of life you're in. For more information, call 1-888-LFS-1200. 
NON-DEPOSIT INVESTMENT PRODUCTS
NOT FDIC INSURED
NO BANK GUARANTEE
MAY LOSE VALUE
Securities and annuities offered through LaSalle Financial Services, Inc., a division of ABN AMRO Investment Services, Inc., a registered broker/dealer, member NASD, SIPC and a licensed insurance agency. Early withdrawal from annuities may result in surrender charges and tax penalties.
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