But that's just a general guideline. This is your retirement we're talking about, so it pays to get a little more specific. It's a good idea to establish a savings target — one that tells you roughly how much you should set aside over time to meet your retirement goals.
As a general rule, you'll need at least $15 to $20 in savings to cover each dollar of the annual shortfall between your income and your expenses. For example, if your projected retirement expenses exceed Social Security and pensions by $20,000 a year, you might need a nest egg of $300,000 to $400,000 to bridge the gap.