For years, $1 million has been viewed as a benchmark for a comfortable retirement. But the truth is, there is no universal savings target. Whether $1 million is enough depends on many factors, such as your lifestyle, retirement age, housing costs, health, and expected expenses.
Creating a budget may help you understand how much you really need. For example, dividing retirement expenses into “needs” and “wants.” Essential costs such as housing, food, utilities, and health care obviously aren’t optional. They should come from reliable, guaranteed sources of income. This isn’t the case for more flexible things like travel, recreation, etc.
$1 million may be plenty for one person, or insufficient for another. Making sure you’re covered for retirement depends more on how your resources fit your specific lifestyle and needs than it does on hitting a particular number.