I remember the days when $250,000 was enough to live on. Now I hear $500,000 to $1 million is good. The truth is that the amount of money you need in retirement depends completely on your specific needs and expenses. To live a comfortable lifestyle, you must ask your self how much income a year would cover your daily needs. Could you live on $50, 000 a year without complaint? Be honest with yourself.

The sum of money has changed over the years because things are more expensive than they were 20 years ago. Take into consideration how much more gas and food cost. Things are not the way they use to be. With the digital age we are currently in, there are more things to pay for. Internet access, cell phones, personal digital assistant's, digital cable and other electronic devices make living day to day more expensive. Taxes are higher than ever. These are all the things that must be taken into consideration when putting enough money aside to retire on. How much will food, gas and electricity cost in five years or ten. You've witnessed everything increase. Save enough for that as well. That's why it is wise to save more money just in case you do not have enough.

This is how it works. You must save enough money to cover you for at least 20 years or more without working. The age of retirement has been increased from 65 to 67. It is not a secret that people are living longer than they use to. With the present advances in medicine and technology, people are living on average 30 years after retirement age. The longer they live, the more money they need to sustain themselves. On top of that, basic expenses continue to get more costly. To live well on your retirement income, you should factor in how much basic utilities and expenses will cost you at that time in addition to other factors.

I personally believe $1.5 million to $2.5 million is a great amount of money to retire on. You want to divide this number over twenty years of time. If it is sufficient for you, you are fine. If you are use to making $50,000 a year before taxes, then you should save enough money to match that type of income for the next 20 years. If you want to live on $80,000 a year, do your homework and calculate how much you need to have in your portfolio or IRA account to live this way. It takes preparation and discipline to get to the goals you want.If you need to pay for medical expenses, add that to your total.

Overall, the amount of income you need to retire is all up to how much you need to live well. $2 million is the number I want to get to.What is yours? Everyone has different goals and aspirations.Be true to how you want to spend your later years. This is an important investment in your future.

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