Planning for life after work is more than just working out how much income you will have or the types of holidays you would like to take. Retirement planning is about giving yourself the best chance of creating a healthy and secure future to ensure your overall wellbeing and happiness.

Fewer than half of Americans have calculated how much they need to save for retirement. In 2010, 30 percent of private industry workers with access to a defined contribution plan (such as a 401(k) plan) did not participate.

How to Prepare for Retirement

1. Start Saving, Keep Saving, and Stick to Your Goals

If you are already saving, whether for retirement or another goal, keep going! The sooner you start saving, the more time your money has to grow (see the chart below). Make saving for retirement a priority. Devise a plan, stick to it, and set goals. Remember, it is never too early or too late to start saving.

2. Know Your Retirement Needs

Retirement is expensive. Experts estimate that you will need about 70 percent of your preretirement income - lower earners, 90 percent or more - to maintain your standard of living when you stop working. Take charge of your financial future. The key to a secure retirement is to plan ahead.

3. Contribute to Your Employer-s Retirement Savings Plan

If your employer offers a retirement savings plan, such as a 401(k) plan, sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy.

4. Learn About Your Employer's Pension Plan

If your employer has a traditional pension plan, check to see if you are covered by the plan and understand how it works. Ask for an individual benefit statement to see what your benefit is worth. Before you change jobs, find out what will happen to your pension benefit. Learn what benefits you may have from a previous employer. Find out if you will be entitled to benefits from your spouse's plan.

5. Consider Basic Investment Principles

How you save can be as important as how much you save. Inflation and the type of investments you make play important roles in how much you will have saved at retirement. Know how your savings or pension plan is invested. Learn about your plan's investment options and ask questions. Put your savings in different types of investments. By diversifying this way, you are more likely to reduce risk and improve return. Your investment mix may change over time depending on a number of factors such as your age, goals, and financial circumstances. Financial security and knowledge go hand in hand.

6. Do Not Touch Your Retirement Savings

If you withdraw your retirement savings now, you will lose principal and interest and you may lose tax benefits or have to pay withdrawal penalties. If you change jobs, leave your savings invested in your current retirement plan, or roll them over to an IRA or your new employer's plan.

7. Ask Your Employer to Start a Plan

If your employer does not offer a retirement plan, suggest that it start one. There are a number of retirement saving plan options available. Your employer may be able to set up a simplified plan that can help both you and your employer.

8. Put Money into an Individual Retirement Account

You can put up to $5,000 a year into an Individual Retirement Account (IRA); you can contribute even more if you are 50 or older. You can also start with much less. IRAs also provide tax advantages.

When you open an IRA, you have two options - a traditional IRA or a Roth IRA. The tax treatment of your contributions and withdrawals will depend on which option you select. IRAs can provide an easy way to save.

9. Find Out About Your Social Security Benefits

Social Security pays benefits that are on average equal to about 40 percent of what you earned before retirement. You may be able to estimate your benefit by using the retirement estimator on the Social Security Administration's website. For more information, visit their website or call 1-800-772-1213.

10. Ask Questions

While these tips are meant to point you in the right direction, you will need more information. Talk to your employer, your bank, your union, or a financial adviser. Ask questions and make sure you understand the answers. Get practical advice and consider preparing for retirement.