Lack of Retirement Savings

I just received the quarterly magazine from Fidelity Investments. They had a nice article on retirement savings. Here's some interesting facts from the article:

(1) "The Fidelity Retirement Index indicates that younger adults (ages 25 to 40) are on track to replace an estimated 55% of projected retirement income when they retire - well below the suggested estimate of 85%."

(2) "The same group, on average, has saved just $9,000 toward retirement and contributes $92 a month toward their nest egg."

(3) "More than one in five (21%) have not yet started saving for retirement."

Scary facts, huh? I continue to see this first hand at work. The company has a decent 401K plan in which they will match up to 5% of your salary. Still, people are contributing much less to be eligible for the 100% match and some are simply not even participating. Talk about throwing away free money! These people aren't young either, they're in their late 40's to early 50's. If you haven't started saving by then; it's going to be a very tough uphill battle. Time is the most important factor in investing. Start early and let compounding do it's magic.