John Krolak, like many would-be retirees these days, has watched the shine fade from his golden years.

A 57-year-old supervisory health scientist in Alpharetta, Ga., Krolak lost a chunk of his retirement savings in the market crash in 2008, and is still playing catch-up. He has abandoned any plan of quitting working ever and instead, he hopes to parlay a part-time teaching job he took on four years ago into a full-time position after he retires in five years. He has given up on seeing more robust returns from the market and doubts Social Security will be around in another 10 years.

It is a grim view of the economic landscape, but hardly unique. A number of investment brokers and analysts have recently started calling for the stock market to deliver much more subdued returns than it did last year when the S&P 500 dished out a total return of 72% including dividends. It s also true that the Social Security system s tax receipts are projected to start falling short of outlays in 2016, and its long-term surplus will recede by 2037, according to the government s latest estimates.

Although retirement experts anticipate Social Security sticking around for many years to come, Krolak isn t taking any chances. In addition to working longer, he switched his retirement portfolio s investment mix away from mostly stocks to safer investments, such as bonds, bond funds and money-market accounts. Krolak is also now looking into purchasing a long-term-care-insurance policy for himself and his wife. The main thing that worries me is volatility, says Krolak. Like everyone else, we took a hit over the past two years, and it was pretty tough. We wanted to secure the savings that we still have.

That preservationist philosophy has been resonating with many individual investors through the downturn. Not only have they similarly flocked to ultra-conservative, fixed-income investments like bonds, the savings rate has soared in recent years, after dipping into negative territory in 2005. Plus, investors appear to be paying off debts in growing numbers. About 62% of advisors polled in a 2010 survey from Charles Schwab reported that their clients have been more focused on paying off debts in today s market environment. That was up from 38% of advisors in 2009, says Schwab.

Although Krolak is aiming to secure his financial future, he s planning to keep everything else in shape as well. I can t think about a traditional retirement, he says. For me, retirement will be multifaceted. Not only do I intend to stay in physical shape -- I work out with my wife three or four times a week at a local gym -- I want to keep working in order to stay in mental shape as well.

Q&A

For many workers, retirement seems like light years away. However, without a proper dose of planning, it ll be even farther away. To help shorten the slog, here s a Q&A for all ages:

Where does a would-be retiree begin his or her retirement planning?

In a best-case scenario, workers should look into retirement planning as soon as they start working, says Joe Black, a wealth advisor at FSG Wealth Management in Stone Mountain, Ga. But even if you wait, the key is to identify your retirement goals and then figure out how to achieve them, he says. Usually you ll need some kind of monthly income -- a pension, an annuity payment or Social Security -- to pay the bills, travel some and keep up with hobbies, Black says. At that point, you work backwards. If you need $100,000 a year, think about how much you have in the bank -- and how much you ll need in the bank. This will help dictate which investments to buy into, he says.

How should future retirees invest their savings? Has this changed?

Yes and no. Since the downturn, people have become much more risk averse and even squeamish about investing, says Black. To minimize making hasty decisions with your money it s best to stick to a methodical, so-called bucket approach to investing, he says. In particular, workers should split up their savings based on the timeframe of their spending goals. Say you want to purchase a car in the next two years. You should stow some of your savings into short-term, minimally risky investments such as certificates of deposit, CDs. For goals with a two- to six-year time horizon such as the purchase of a home or a child s education, look into midterm, slightly riskier investments. Then for longer-term goals like retirement, invest with an eye toward greater returns, which often means riskier investments. Whether you do it yourself or with the help of a professional, this approach helps mitigate fear when there is a huge market downturn, he says.

How should older individuals go about regaining their retirement savings?

Saying people should save more is simple. But in practice, that notion gets a lot more complicated. Plus, it s rife with difficult money dilemmas. Black notes that his wife, who went to Stanford University for her undergraduate degree and then attended Columbia Law School, managed to build up a whopping $250,000 student-loan debt. Although, he says his wife s parents wanted to help pay for their daughter s education, they had competing interests -- in particular, they need to save for their own retirement, he says. Similarly, many parents want to help their kids get ahead in life and not have a huge debt-load to bear. However these days especially, tough love is often necessary. Consider a compromise, says Black. You might agree to help pay for a child s undergraduate degree, but consider drawing the line at upper level degrees. The same thing goes with pricey weddings. Perhaps parents can help foot some of the bill, but when the conversation moves to a Vera Wang dress and a Rolls Royce Phantom in the parking lot, consider shutting your pocket book. Once competing costs have fallen aside, make focusing on retirement a top priority, Black says.

What should workers do if they think Social Security won t be around when they retire?

Although this may not be the most informed worry, if it is one, try to build up your savings so that you won t need to rely on Social Security. Note that you ll need to provide a sizable boost. About 46% of workers who earn less than $35,000 anticipate Social Security to be a major source of income, compared with 17% of those with income of at least $75,000, according to the Employee Benefit Research Institute s 2010 Retirement Confidence Survey. To estimate how much you ll need to save in lieu of not having Social Security, use this benefits calculator. Once you know how much you ll need, start building up your savings. You might also consider replicating that income stream, suggests Black. Working with an employer that offers a pension may be a good substitute. Or, you might consider purchasing an annuity, which is a pension-like investment that offers guaranteed payments for life.