Many people are of the opinion that it's perfectly fine to fall back on Social Security for retirement income. But that strategy could make your senior years a lot less enjoyable.

Social Security will only replace about 40% of your pre-retirement paycheck if you earn an average wage. And many seniors need a good 70% to 80% of their former income to live comfortably -- hence the need for personal savings on top of those monthly benefits.

When it comes to saving for retirement, you have choices. Anyone with earned income is eligible to open and save in an IRA. But if your employer offers a 401(k) plan, you may be inclined to sign up and take advantage. If you're going to do that, though, here are some steps you can take to help ensure that you're making the most of that retirement plan.

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Source Fool.com