How much income you need in retirement varies greatly by lifestyle, where you live and many other factors, especially how you want to live in retirement. Obviously, if you live frugally and plan to do so in retirement or are willing to relocate to a lower cost area, that sets one standard. That set of circumstances results in estimates from experts that you will need 70%, 80% or so of your pre-retirement income.
Only you know the real answer for your situation and if you don’t, it is a good idea to find out the answer.
There are many people out there who believe they can survive quite well in retirement on Social Security alone. The lower your income the more likely that may be true because Social Security replaces a greater percentage of income for lower-income Americans.
For example: If you retire at age 67 today earning $50,000 a year, your annual Social Security benefit based on the SS Quick Calculator is $17,160. If you are married, your family benefit is $25,740.
If you earn $35,000, your annual benefit would be $13,836 or $20,754 for a couple.
Is that replacement percentage sufficient to live on for another twenty years or so? I don’t think so, but you may have a different view. In any case, the savings figures for Americans 55 and over indicate many see Social Security as the bulk if not only income in retirement.