Looking to Retire With $1 Million? You May Need to Aim Higher
It's hard to tell someone exactly how much they'll need for retirement because personal situations will vary widely. Someone retiring in an expensive state like California who plans to travel often will probably need more than someone who wants to retire on a beach in North Carolina and simply relax.
$1 million has traditionally been a great threshold for many people to aim for when saving for retirement, but here's why you may want to aim higher.
One way to determine how much you'll need in retirement is by first deciding how much you'll need annually using the 80% rule. The 80% rule says you should plan to have 80% of your annual income in retirement to maintain your current lifestyle. Given that baseline, here's how much annual retirement income someone should aim for based on their current income:
Source Fool.com
