Unfortunately there is no generalized answer to this question and each individual needs a different amount due to the diversity of their needs. However, retirement need not be a death sentence and you can maintain the lifestyle that you are used to if you make a concerted effort to save for it early enough.
As a rule of the thumb, you’ll need at least 75% to 85% of your final income to continue enjoying life as it is. So where do you start? Well, you can begin by trying to figure out what your salary will be when you reach retirement age; but don’t pull your hair out; you are not expected to be psychic. However, you do need to figure out what fraction of your salary you’ll be saving and begin to set it aside as early as possible during your career life.
Moreover, you can choose to retire in your mid-sixties which will result in fewer years as an unemployed individual. What’s more the longer the period that you give yourself to save, the softer you’ll be on your income as compared to early retirement where you have to make larger deductions so as to reach your target amount faster.
In addition, you also need to consider your lifestyle as you try to figure out your retirement needs because if you love the finer things in life then you’ll definitely have to dig deeper into your pockets to ensure that you enjoy them to the very end.
Furthermore, try and de-clutter your saving by establishing a college fund for your children and ensuring that all your mortgages and other substantial debts are cleared before you hang up your boots. This way, you’ll ensure that you’ll use your retirement kitty for exactly what it was intended for: your own enjoyment.