Great point FrugualFran. It really is a complex formula with a lot of factors to consider. In my opinion, it is worth the time and potential extra costs to see a financial adviser or planner to help you with that question. They have software and templates to get you started and they ask you the right questions.

When calculating this, be sure to include expenses like supplemental health insurance and prescriptions. Medicare doesn't cover everything and most of the retired folks I know have to pay some money out of pocket every month for healthcare. I haven't put a dollar amount on my retirement. Right now, I'm just saving as much as possible and hoping it's enough.

I guess the key words here are 'you' (as we all have different circumstances), and 'need' (versus want).

I have friends who are in a position to downsize close to or even well before retirement, releasing equity for investments and a long term passive income. They are definitely in the 'want' category, pretty free to make those decisions now and guarantee a comfortable retirement, on their own terms.

Very good question, but tough to answer. There are a ton of factors at play. I would love to help you though. Some general questions you need to ask yourself is, how much would you want per year to live off of (consider inflation as well), how many years till your retirement, what are you investing in your retirement (stocks, bonds, etc.) There are a lot of retirement calculators online that are very helpful as well.

Have you calculated how much retirement money you are going to need? Will it be $500,000? $1 million? More than that? I add to my retirement accounts every month, but I am still fearful that it will not be enough. How did you figure out how much you need?