How Much Do You Really Need to Save for Retirement?



One of the most commonly discussed topics in personal finance is knowing how much you need to save for retirement. Many news articles give specific numbers, with $1 million being a very common target. Those articles are meant to frighten: You need at least a million, they say, and the average person nearing retirement has saved only a fraction of that!

The trouble with target savings numbers is that they are typically aimed at a mass audience. Some individuals in the audience may need less than recommended for a comfortable retirement. Or, conversely, others may need much more. The amount you need for your dream retirement depends on a great number of factors that are specific to your unique financial situation.