How much money is “enough money” for retirement?

You know building your nest egg is critical. But most guidelines remain frustratingly vague - "save 10-15% per year", "7 figures should do it". The reality is retirement savings targets should balance many personalized factors. Use this framework to establish a more precise savings goal tailored to your situation - both the needed total amount AND required monthly run rate to get there in time.

Envision Your Retirement Lifestyle

Retirement savings targets vary greatly depending on preferred lifestyle. Estimate required yearly income for:

Modest lifestyle (budget travel, basic home) - $40-60k

Comfortable lifestyle (some luxuries) - $60-100k

Luxury lifestyle (frequent extravagances) - $100k+

Factor In Current Age

Your current age influences total savings needed due to compound growth over remaining years.

Age 25 - $300-500k total savings goal

Age 35 - $800k-$1.5 million total savings goal

Age 45 - $1.5 million-$2.5 million total savings goal

Decide Retirement Age

Your preferred retirement age also impacts sums needed.

Retire at 55 - $1 million+ total savings goal

Retire at 60 - $2 million+ total savings goal

Retire at 65 - $3 million+ total savings goal

Calculate Required Savings Rate

Next, determine the monthly savings rate needed to reach your goal based on age.

If starting age 25 (retiring 65) - save 15% monthly

If starting age 35 (retiring 65) - save 20% monthly

If starting age 45 (retiring 65) -  save 30% monthly

Saving diligently across different life and career stages is key to hitting your target. Reevaluate your customized goal annually and adjust monthly run rate as needed!

The numbers in this post are good benchmarks to start with. But your actual retirement goals (and how much to save) should be tailored to your age, income, lifestyle, money goals, and more.