How much money do you need to retire?

Neta Homier
In this July 26, 2012, photo, Neta Homier looks over bills in her home in Toledo, Ohio. Homier says she relies on Social Security to pay her bills and while she is confident the program will continue to help her she fears it will not be able to rely on it. "Social Security is what's carrying me," Homier said. "It pays all my bills."
AP Photo/Carlos Osorio

Do you plan to retire? If so, you better start saving now, or yesterday.

Fidelity has created a rule of thumb for retirement savings: "Save at least 8 times (8x) your ending salary to help increase the odds that you won't outlive your savings during 25 years in retirement." By age 35, you should be at 1x your current salary, by 45 you should have 3x and by 55 you should have 5x your salary in savings.

T. Rowe Price, on the other hand, recommends saving 12x your salary, while BTN Research estimates you need 18x your yearly pay.

Why are these estimates all over the place? There are many variables that influence how much you'll need to save: inflation, health care costs, pensions, salary growth, retirement age — to name a few.

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Personal finance educator Ruth Hayden joins The Daily Circuit to answer your questions about preparing for retirement.

LEARN MORE ABOUT SAVING FOR RETIREMENT

How Much Is Enough to Retire? Careful Now...

"In a nutshell, inflation explains the Sunbelt. It's not just about warmer climes and country living. Retirees often simply have to find cheaper places to live. States like Florida fill up with older folks in part because of good weather -- but zero state income tax, real estate exemptions and other tax breaks are a big draw, too." (Forbes)

Retirement calculator

CNN Money provides a tool that shows how big your retirement nest egg should be given different variables.