It is important to understand your financial picture today, what kind of income you will want to live on in your retirement years, and what other sources of income you will have (such as Social Security, pensions, insurance investments, and other after-tax investments). It is equally important to know if you will have any large debts, such as mortgages, college tuition payments, or student loans, as those will also affect your expenses. With compounding of investment income, reinvesting dividends, company matches, and getting an early start on investing for retirement, it may be easier to reach your retirement goal than you think.