$1 Million Doesn't Cut It for Retirement

While most people will spend less when they retire, inflation or the onset of a long-term illness could wipe out savings without proper protection or planning.

That said, there's no secret to meeting a retirement goal: maximize your contribution rate, have a greater tolerance for risk when you're younger and downshift to bonds as you grow older. Successful preparation, however, begins with setting a realistic goal and understanding your true financial picture.

Debt needs to be carefully considered as well as leaving money for the kids.

"There are two extremes," Smith says. "There are individuals who say, 'We don't care if we have anything left the day we die -- we are OK with that last check bouncing when we are gone.' Then there are the individuals who don't do anything in retirement because all of their decisions are made around, 'I've got to leave it for the kids.' "

-- Reported by Joe Mont in Boston.

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