During your saving years, making sure that your plan stays on track means planning for your retirement savings to cover your expenses throughout your retirement. Being successful depends primarily on four things:

• How much you have saved so far and how much you save going forward
• How you invest what you save
• When you retire
• What the markets do until you retire, as well as after you retire

Reduce Debt

Taking on some debt like a home mortgage, for example, is often necessary and, some would argue, a good thing. But non-deductible, high-interest debt, like credit card debt, personal loans, and auto loans can be a major obstacle to saving. Carrying large amounts of debt means that the money you could be investing, which would compound for the future, instead is used to finance the debt.
Working to reduce personal debt by limiting purchases or refinancing loans at a lower rate is a good first step for any high-debt household to consider.

Establish a Cash Emergency Fund

Fidelity believes that everyone should have enough cash to cover at least six months of expenses without having to tap into investments that are subject to market fluctuation or retirement savings. Whether it's car repairs or job loss, preparing for the unexpected is not only smart, but will likely decrease the stress associated with such an event.

You'll want to make sure the fund is in a liquid, interest-bearing account; that way, you can access it without penalty if needed, while at the same time, allowing it to grow. Lastly, remember to replace emergency funds as you use them, so they're available the next time something unexpected pops up.

Get Adequate Insurance Coverage

Make sure to periodically review your life, health, homeowners', and auto insurance policies so that you have the adequate coverage to protect your family and your retirement savings in case of a home catastrophe, acute or chronic illness, or the loss of earned income due to total disability or premature death.

• Estimate your life insurance needs.
• Learn more about protecting your heirs with the resources in the Estate Planning Action Center.

Save On Schedule

Setting up a regular savings plan can be key to protecting your savings. Even small amounts, set aside every pay period, can add up over time. Take advantage of payroll deductions at work, direct deposit, or an automatic transfer from your checking to an investment account. A common savings strategy is to pay yourself first by putting money away for retirement and other goals.

Saving regularly also gives you the potential to take advantage of dollar-cost averaging. By investing a fixed dollar amount in a diversified portfolio on a regular basis, you will end up buying fewer shares when the share price is high, and more shares when the price is low. Keep in mind, however, dollar-cost averaging won't guarantee you investment gains in a declining market.

There are several ways we can help you save on a schedule — learn how you can manage your retirement with ease, with automatic investments, direct deposits, a SimpleStart^SM IRA with automatic investing, and other cash management features.