It is important to understand what your financial picture is today, what kind of income will you want to live on in your retirement years, and what other sources of income will you have (like social security, pensions, insurance investments, or other after tax investments). It is equally important to know if you will have any large debts, like mortgages, college tuition payments, or student loans, as that will also impact what your expenses will be. 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.