I want to retire at 50 how much money will i need?

How much money can you need to never have to work again? Helping people like you answer that real question is things i spent the majority of time figuring out for clients as a financial advisor.

With company pensions going the way of the dodo bird and Social Security feeling increasingly more like Social inSecurity, we’re increasingly accountable for creating our very own financial back-up for retirement. But determining how much cash we have to retire may take some work.

One rule-of-thumb is the fact that saving 10%, 15%-or better yet 20%-of your earnings, steadily, for Thirty to forty years is deserving of the amount of money you need.

Or you can opt for age-based guidelines like these, developed last year by Fidelity Investments:

At age 35, you ought to have saved an amount comparable to your annual salary.

At age 45, you ought to have saved three times your annual salary.

At 55, you ought to have five times your salary.

At 67, whenever you retire (under these guidelines), you should have eight times your final salary saved.

While these provide good guidance, retirement planning is fraught with unknowns that needs to be considered. This is exactly why I recommend estimating a retirement range, instead of sticking to a set-in-stone number.

You should address the obvious questions, obviously, like: When would you like to retire? Just how much income do you consider you will need in retirement for the lifestyle you want-and how long? How much would you expect to receive from Social Security? If you keep saving at the current rate, just how much will you have?

Lots of sites have free retirement calculator tools, including AARP and Bankrate.

Then there are less obvious questions:

Are you planning to purchase college therefore, how much so when?

Do you intend to stay in your present house and will you still have a home loan then?

Do you anticipate needing to take care of elderly parents or dependent children later?

Do you’ve health problems since will probably generate bigger expenses as you age?

How much money do you want to leave behind whenever you die?

Once you’ve answered questions like those above, adjust your retirement targets accordingly.

Considering the possibility variables, your target savings range may be wider than you initially thought. One easy method of getting a feeling of your range would be to run multiple scenarios with an finance calculator using three different assumptions to have an average annual rate of return in your retirement investments-2%, 6% and 10%-which can represent the worst, average and best-case scenarios. If you are uncomfortable with the worst-case scenario, you need to get confident with the potential of retiring later, living on less in retirement or sacrificing a little more how to have more for future years. You can use the internet calculators to determine how putting aside more may affect your results.

Luckily, small adjustments now can create a huge difference down the road. Think about this: For those who have $10,000 currently saved and increase your monthly contribution from $500 to $1,000, in 25 years you’ll have nearly $350,000 more saved! (That’s assuming a typical annual return of 6%, compounded monthly.)