What is the minimum a person should have saved prior to retirement?
Answers | 2
The reason for the "20 to 25 times" factor? It is relatively safe to assume a retirement portfolio can generate 4% to 5% of it's value in retirement income with very little (if any) chance of ever running out of money. So a $1,000,000 retirement portfolio could safely generate $50,000 per year of income and $50,000 x 20 = $1,000,000. Simple as that, but in practice, not so simple. Other assets, other sources of income, legacy plans, etc. all factor into the equation. Seek a qualified, fee-based financial planner to get some help with your personal retirement plans. Find the right planner and you will be glad that you did!
So as you can see that answer is specific to each individual and depends on the possible sources on your income in retirement such as Social Security and pensions.
Work with a financial adviser to help you answer that question for you specifically. Good luck!