How to reach your retirement dreams

Americans believe they need $1.7 million on average to retire, according to a survey from Charles Schwab. However, most people aren’t saving enough every year to get there.

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Financial expert Chris Hogan said there needs to be a plan based on each individual.

“Each person’s retirement is going to look different. Everybody has different dreams and different goals,” he told FOX Business’ Dagen McDowell on "Mornings with Maria" on Tuesday.

More than half of those polled are contributing 10 percent or less of their salary to their 401(k) -- their largest source of retirement savings -- with an average annual contribution of $8,788, Schwab found.

“The best way to stop worrying is to have a plan," said Hogam. "Start to gain insight and understand exactly what retirement is.”

In addition to those basic guidelines, Hogan recommends using a retirement calculator to get a more accurate picture of your retirement number. Some of his tips include knowing what you’re aiming for, calculating the number, getting on a budget and getting out of debt.

“If you get on a budget, you get yourself out of debt, and you start investing, you give yourself a chance to grow your money,” he said.  “As you get yourself out of debt and save towards those trips, it’s just a matter of having a goal and having a plan.”

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If you start in your twenties, stashing 10 to 15 percent of your salary each year could be enough to retire comfortably, according to Schwab. But if you don’t start until age 45 or older, you would need to set aside as much as 35 percent of your salary annually – a goal few workers achieve.

“Retirement is about you reaching your dreams," said Hogan. "What are the things you want to do later in life? Are you wanting to travel? Are you wanting to spend more time with family? Are you wanting to do more giving?”