It's never too early to start saving for retirement -- and never too late.

Starting early is better. You'll give your retirement funds more time to grow and hedge your savings against future upsets. One study found that six out of 10 people in their 50s and 60s experience a job loss, illness or other income-shattering calamity.

If you need even more incentive to save, consider this: Though most workers feel confident about their retirement, many don't have enough money set aside to pay for it.

• Fifty-three percent of workers in their 30s have workplace retirement plans or individual retirement accounts (IRAs) with a median value of $17,000.
• By their 40s, 59% of Americans have retirement funds, with a median value of $40,000.
• Two-thirds of workers age 55 or older have less than $100,000 in their retirement accounts, far from adequate when experts recommend you draw no more than 4% or 5% a year from your accounts once you quit working.
• Scarier yet: About 60% of retirees 65 and older get the bulk of their retirement income from Social Security, and the average payment is about $1,150 a month.

Start today

Be realistic about your retirement needs and set a goal. Experts recommend you sock away at least 10% of your gross income each year for retirement. Retirees generally need at least 75% of their previous income to continue their standard of living (more if they want to travel or indulge expensive hobbies). Social Security now replaces about a third of pre-retirement income, but that amount will decline in the future.

• How much will you need to save? Learn about your magic number, then use MSN Money's retirement-planning calculator to run the numbers.
• Pay off your credit cards.
• If you're behind, one way to catch up is to reduce your spending to 60% of your gross income to build savings and retirement funds.
• Take advantage of your workplace 401k or similar plan and save at least enough to get the full match from your employer. Don't be tempted to withdraw your money before age 59-1/2; you'll pay a 10% penalty and miss out on future earnings.

Know your options
The number of employers that provide traditional pension plans is steadily declining, so most people save for retirement with 401k's and/or IRAs.

• 401k's allow you to save up to about $16,500 a year in 2009 (the amount increases each year by an index tied to inflation) in pretax income. If you're older than 50, that ceiling is much higher: $22,000. You won't pay taxes until you start drawing on the money. Most employers will match a portion of your contribution. Similar plans exist for employees of small businesses and nonprofits, the self-employed and public employees.
• You can place up to $5,000 in pretax money a year into an IRA ($6,000 if you're over 50).
• Other savings options are Roth 401k's and Roth IRAs, which allow you to save taxed income and withdraw the earnings tax-free. Roths are preferred by people who anticipate being in a higher tax bracket when they retire or want their heirs to get the money tax-free.

Don't neglect the details

Once you've begun growing your retirement money, take stock of your investments every year and rebalance them as needed.

• Do you have the right asset allocation for your age, income expectations and risk tolerance? Adjust accordingly. Many financial advisers say you should keep at least 80% in stock funds. Don't put all of your money in one basket.
• Prepare for the inevitable: Make a list of your assets, including brokerage accounts, employer retirement plans, bank accounts and life insurance, and make sure it's easily found in case you die.
•  Keep your list of beneficiaries up to date.
• Have a durable power of attorney for health care and finances, a traditional will and a living will.
• Read this retirement checklist to make sure you're on track.

You can see it from here
When you hit your 60s, focus on the reality of retirement.

• Pick a date. Then you can realistically figure out if you have the money to make it happen. If not, adjust the date or make other choices.
• Next, decide where you will be living. It's a huge factor in determining how much money you will need.
• Research long-term-care insurance.
• Prepare a budget, including a healthy chunk for medical expenses. Use MSN Money's retirement expense calculator.
• Consider using some of your assets to purchase an annuity or longevity insurance to guarantee a monthly check for life.
• Get professional advice from a fee-only financial planner committed to a fiduciary standard.

Don't panic -- you still have options
What if you're short of your goal?

• Many retirement plans have been sabotaged by the recession. Now more than ever, you need a game plan.
• Downsize to a less expensive residence.
• Borrow the equity in your home with a reverse mortgage.
• Delay drawing on Social Security. Your monthly check will be larger when you finally collect.
• Keep working -- if you are able. After age 65, 38% of men and 42% of women have some sort of disability.