Retirement is a part of life that some of us avoid thinking about because it means you need a lot of money saved to live when you reach retirement age. However, it is important to start saving as early as you possibly can.

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As the video suggests, saving 12 times your yearly salary is the key number to how much you would need to have in your retirement fund. Every person’s needs are different, and it is important to try to minimize the cost of living and save as much as you can, about 15% of each paycheck to save enough throughout your lifetime. You can find your number by using the easy retirement calculator.

You can do this by opening up a 401k, and using an employee match if available.

The number you come up with also includes your social security. However, social security only takes care of some of your retirement income needed. If you have a low income it is estimated that social security will cover 75% of your income needed, and if you have a high income only 27% would be covered by social security.