Are you ready for retirement?

CAPE GIRARDEAU, MO (KFVS) - If you're getting close to retirement, you might not be as prepared as you think.

A University of Missouri Personal Finance Associate Professor said her research shows people aren't saving enough for retirement.

She looked at how much people invested in their retirement funds versus how much the IRS allows.

In 2010, only 3 percent of workers contributed the maximum amount allowed.

Tyler Cuba, a financial planner in Cape Girardeau said he's not surprised by the findings.

He said saving for retirement has changed in the past 20 years.

While it used to be more focused on private pensions and social security, he said now there's a transition to rely more on what people are actually saving.

"It's easy for people to fall into the misconception that saving is what we do after we fund our lifestyle expenses, instead of actually treating it as a lifestyle expense that we'll be paid for in the future," said Cuba. "I think it's important for people to understand that the savings component should be treated as an expense because in reality it will be an expense whether it's today or in the future, so kind of have the mentality of pre-funding lifestyle expenses."

Cuba said it's important to not look at what you can save now, but what you need to save for retirement.

Cuba also said there's not set retirement plan for anyone, it's unique to each person.

If you want more financial planning tips you can follow the Cuba Financial Group's Facebook Page here.

We spoke with Michael Griffith of Dexter.

He and his wife don't feel fully prepared for retirement at this time, but he said they're well on their way.

"On the advice of our accountant he told us to invest in IRAs and bonds and stuff like that, we also have savings accounts, we've completely paid off all our debt, we're completely 100 percent debt free, so that money we do make every month still goes towards our bonds our savings," said Griffith.

You can search for Griffith on Facebook to learn more about his business plan.

Copyright 2013 KFVS. All rights reserved.