The amount of savings needed for retirement depends on the person, states AARP. Though $1 million is a common quote, there is no one-size-fits-all dollar figure. Factors to consider are geographical location, individual health and life expectancy. Consulting an experienced retirement-planning advisor is the best approach to developing a personalized financial plan, advises CNBC.Continue Reading
Kiplinger.com offers a retirement savings calculator that accounts for desired annual income, anticipated income from Social Security and pensions, home equity, and number of expected years in retirement.
If retirement is approaching soon, a formula to estimate one's necessary savings is to subtract guaranteed income like Social Security from the desired yearly retirement income, then multiply that amount by 25, states CNBC. Therefore, if the desired annual income is $150,000 and Social Security benefits are $30,000 a year, then savings need to be approximately $3 million ($150,000 - $30,000 x 25).Learn more about Financial Planning