And we haven't even talked about the possibility of a family member's long-term illness, or the main bread-winner being laid off.

Today, we are still reading dismal employment reports. Scary! And these nation-wide problems can and will affect when, where, and what lifestyle your retirement will take.

Retirement doesn't have to mean sharing a can of spaghetti o's five days a week and watching television (sorry, no cable) 10 hours a day because you don't have enough money coming in to enjoy hobbies, occasional restaurt dining, some travel or other outdoor activities. But if you don't plan for these things you may be in for a surprise.

Your Future Depends on several factors. Saving for your retirement still needs to be your top priority.The median retirement age is still 62, but you won't receive full retirement benefits at that age so if you can, put it off a few more years. Start making "possible", and then definite plans about where you'll live, what you'll do and how much money you'll need to do pay your bills, including entertainment, emergency funds and travel.

Decide on the age you want to retire, and if you will continue to work part time or start a home business. Most studies say that baby boomers want to continue working at least part time or start a home business ( start now and build over the next few years instead of waiting) after they reach their retirement age so they won't have to rely solely on their social security benefits. The longer you are employed, either through your current job or a home business, the less you will have to save. Even an extra $300-$700 a month with a home business or part time job could change your lifestyle for the better.

Many industries are downsizing, like airlines, auto and other manufacturing for instance. A second career or home business might be able to fill in for that loss of income. Start to look around at other careers and opportunities you can start now part time for your future.

Don't go back to school on borrowed money. If you are in your 50's and want to start a new career that requires a new degree or higher education, you will be saddled with loans for many years and once you have completed your education you may never even find employment using your new degree.

I think this goes without saying but it bears repeating because for some people it is very difficult. But even Suzy Orman agrees. Don't pay for your adult children's expenses if they are out of school and able-body. It doesn't teach them to be independent adults and it could cause financial ruin for your retirement plans. Think they'll step up to the plate for you? If they don't have their own life in order, they certainly won't be able to help you now that your retirement has taken a financial hit.

If you're thinking about retiring before age 65, when Medicare coverage kicks in, consider your health insurance options. Does your company offer retiree medical coverage? Most don't and fewer still will in the future. Would you be covered under a spouse's coverage at their work? Would you be eligible for COBRA continuation coverage? If so, you could continue coverage for up to 18 months under the Consolidated Omnibus Budget Reconciliation Act (COBRA). Check with HR dept where you work for more information, but realize that you will be taking over the whole premium plus 2% for administrative costs if you do.

After the 18 month period is up, HIPAA guarantees your ability to buy private individual coverage without facing exclusions for pre-existing conditions. If you are considering a different private insurance policy, pre-exisiting conditions may not be covered. As we age,things like arthritis, back problems, and other health issues could fall into that area. And then there is long-term-healthcare to consider. Estimates say the typical couple at age 65 will need about $215,000 to cover those costs.

Where will You Retire? Will you stay in your existing home or move to a different town, state, country? Does the state you currently live in or one you are thinking of moving to tax Social Security benefits and/or pensions? If they do, how will it affect your standard of living?

If you don't have a healthy retirement savings, every extra dollar should go to paying down any debt you have, including your mortgage. Suzy Orman advises (and many other financial experts agree) that credit card debt need to be paid off first and once that's done, take the money you used to pay that debt with and pay down your mortgage.

How much will you need to retire? That depends on many factors, but while you're still working, start saving 10% of your gross income each year for as long as you can. The general rule of thumb is that you will need at least 75% of your previous income to continue living in your current lifestyle. Social Security will only replace about one third of your "working" income, and is generally about $1,000 a month. So if you currently earn approx $40,000 a year, you may need to generate an additional $11,600 a year.