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I would say the first thing to do is establish how much you need annually to live your lifestyle.
Multiply that by 25 and if you have more than that then you're in decent shape.

It's slightly more complicated than that. For example, someone determines they need $40,000 per year to live. The above calculation says they need $1 million in savings. If they retire, this person will receive $25,000 in a pension and $15,000 in SS. They covered the $40,000 in expenses. A less financially savvy person would think they couldn't retire until they had $1 million saved so they keep working.

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