There is nothing scarier than approaching retirement and realising you just don’t have enough stashed away to maintain your lifestyle. It is a horrible, stomach churning feeling which no-one should go through.

The secret to building a retirement nest egg is to start early and contribute regularly.

If you want to retire on half your current salary you will need to contribute 12 per cent of your earnings every year of your working life. Many financial planners recommend you contribute as much as 15 per cent to ensure a comfortable retirement. That’s a big difference to the 9 per cent your boss is paying.

But if you didn’t follow that strategy and kept putting it off, the late last dash to retirement is a critical period. If you’re in your late 40s or early 50s and that super fund is looking skinny, it’s time to take action.

. Start Right Now.

Forget the past, think of the future and get started. Yes, right now.

The first step is always the hardest but after that it should become a habit to plan every financial decision around your retirement. Check back regularly to make sure you’re keeping up.

For many it is a state of mind. So get your head right.

. Take Advantage of Government Incentives

Low and middle-income earners should try and participate in the government’s co-contribution scheme. For every $1 you put into your super, up to $1000 a year, the government will match it. So if you put in $1000 the government will put in up to $1000 extra. The government’s co-contribution starts to drop when you earn over $31,920 and eventually phases out at $61,920.

Another thing to remember is if your spouse earns less than $13,800 a year you can benefit by contributing to their super. You can put up to $3,000 into their super each year and claim a spouse tax offset of up to $540.

. Salary Sacrifice

Find out if your employer can deduct extra contributions from your pay before tax is taken out. This reduces your taxable income…so more money goes to your super savings and less to the taxman. If you can’t afford to do this on a regular basis try and salary sacrifice your bonuses or overtime.

. Make Extra Voluntary Contributions

You can also make after-tax contributions of up to $150,000 a year directly to your superfund. Any contributions over that limit will be taxed at 46.5 per cent.

Before you say “where the heck am I going to get that extra cash”, keep reading because we have suggestions. But if you receive a windfall like an inheritance, a work bonus, a scratchy win or whatever, put the extra cash in to superannuation.

Because the money is invested in super, returns are taxed at a maximum 15 percent, not your regular income tax rate, and you won’t have to pay any capital gains tax.

. Find Extra Cash for Super

Look at your current budget and expenses. What are you willing to give up today to make an investment in your future? Every little bit counts. There are some obvious possibilities; cut Foxtel… there are now a dozen free to air channels (with digital); drop your gym membership and exercise at home; cut your dry cleaning bill by washing at home; keep your car longer or get rid of it; find cheaper life insurance… try your super fund; sell some possessions you no longer want or need on eBay; get a second job and put that entire income in to super.

We bet you can think of plenty of other areas.

Invest More Aggressively

With limited time to save for retirement, you may need to step up your investment strategy a bit in order to reach your goal and take on a little more risk. Get some good advice from a financial planner but you may need to invest more in the higher growth option offered by your super fund. This may expose your portfolio to more volatility, but if your money is invested too conservatively, your account may not be able to keep up with inflation.

Rethink Retirement Goals

If you're getting a late start to saving for retirement, you may have to revise those retirement income goals and adjust the planned retirement lifestyle accordingly.

As well, consider delaying retirement by a few years to give yourself more time to save. The longer you work, the more money you can save and the fewer years you’ll have in retirement that you’ll need super to finance.

Working during retirement, at least part-time, is also an option as another potential source of income. The rules have been relaxed in terms of extra income retirees can earn and it’s certainly attractive to work a couple of days a week.