The article defines methods for determining what you’ll need to retire:
- List your current expenses
- Estimate your new expenses in retirement
- Add up your future estimated expenses
- Find your estimated social security benefit
- Add your pension or retirement plan benefit
Then determine what you need to SAVE to meet that goal (go to troweprice.com/ric for an online calculator).
The article goes on to say that you’ll need to have saved at least $1.25 million at age 65 to be able to withdraw between $50,000 and $62,000 (in this year’s dollars).
Let’s start SAVING!