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Saving for retirement is critical, but it's not something the majority of Americans are doing well.

Vanguard just released its annual survey on retirement savings and found that 58% of Americans are not on track to retire comfortably. (1)

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It's not just a concern for those nearing retirement. Picture someone like Janet, 35, a millennial who earns the U.S. median income of $62,000 , and has $15,000 in her retirement account. Is she behind? Some experts would say yes.

The investment management firm T. Rowe Price recommends that by the time you're 35, you should have a nest egg equal to 1 to 1.5 times your salary. In Janet's case, that would be $62,000 socked away in retirement accounts. (2)

There may be any number of reasons Janet is falling behind. Maybe she's been paying off student loans or her current monthly expenses - including a high rent - make it tough to save.

Whatever the reason, a young person in Janet's situation needs to save aggressively for a secure retirement. The good news is that it's possible with some planning.

How to set your retirement savings goals

The first thing to do is determine how much you need to save for retirement.

Read more: How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement

Here are the steps to figure that out:

• Start by deciding when you want to retire, for example, 65, 67 or 70.
• Determine how large a nest egg you want to live comfortably. For many, saving 10 times their final salary by age 67 is a good amount (3)
• Estimate your projected future annual returns. This will vary depending on what you invest in, but around 10% is reasonable, given that's what the S&P 500 has consistently delivered since it was created in 1957. (4)
• Use an online savings calculator to determine how much you need to save each month to reach your retirement goal.

Applying these steps in Janet's case, let's say she plans to retire in 30 years - at age 65. Starting with a salary of $60,000, if she gets a 2% annual raise, she should end up with a final salary of around $112,000 upon retirement.

If her goal is to have 10 times that saved by the time she retires, she'll need $1.12 million by age 65.

According to Investor, if she starts with $15,000, earns a 10% average annual return and aims to amass $1.12 million in 30 years, she'll need to invest $434.80 a month.

As this scenario demonstrates, it helps to set your retirement goal first in order to focus on your long-term target. This will help you stay motivated over the decades you need to contribute to your nest egg.

How to start saving more aggressively for retirement

If Janet wants to achieve her goal, she needs to do more than save. She needs to invest aggressively to achieve that 10% return.

A young person in her situation should explore different retirement account types to decide which is the best fit. It may be a good idea to consult with a financial advisor.

If her employer offers a company match for her 401(k) , that's a priority.

To access a broader range of funds than a 401(k), she could also invest a traditional or Roth IRA at a brokerage firm.

Traditional retirement accounts, which offer tax breaks at the time of contributions, can be a good option if you think your income bracket will be lower as a retiree.

Roth accounts that defer your tax savings for when you make withdrawals are a better choice if you expect to be in a higher tax bracket later.

Once you have the right investment accounts in place, set up automatic contributions. You can have 401(k) contributions deducted from your pay or have the funds transferred from your checking account to your IRA on payday. This way you can't spend the money before it is invested.

Build your budget around these contributions, cutting monthly costs where needed to make your monthly investment target.

You may be able to do that with small changes like reducing membership fees, eating out less often, using coupons and adjusting your thermostat to save on energy.

But you may need to make bigger changes like getting a cheaper car, downsizing or getting a roommate.

Ideally, your fixed costs should be below 50% of your income while discretionary spending is at 30% and savings is at 20%. (5)

By taking these steps, you can hopefully ensure a secure retirement for yourself, getting back on track even if you are behind, and making certain you have the financial security you deserve as a senior.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines .

Vanguard (1 ); T. Rowe Price (2 ); Fidelity (3 ); Business Insider (4 ); Wealthsimple (5 )

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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