Making financial preparations for retirement is an essential step in your planning. But according to a study from the Employee Benefits Research Institute, many people simply aren't prepared to retire. What's the problem, and how can people avoid the same fate in their retirement planning?

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at the EBRI study, noting that 36% of those surveyed have less than $1,000 saved for retirement. Debt is a major concern, with 58% of workers saying they have a problem with debt. Dan also notes that income disparities are an issue, with 36% of those earning $75,000 or more saying they're very confident about their retirement plans, compared to just 11% for those earning between $35,000 and $75,000, and 7% for those earning less than $35,000. Dan concludes that it's just that much more important to save no matter how much money you earn, while also making the most of other income sources that are available to you.

Your key income source in retirement
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Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.