The WSJ recently published two excellent graphics which show how long $1 million of retirement savings would last based on a given rate of after-inflation growth. Definitely provides some insight into how much you will need to save and most likely you will need more than you think. Particularly if current low rates of return persist for a long time.
Recent calculations from the Employee Benefit Research Institute show that roughly 44% of those born between 1948 and 1978—baby boomers and Generation X—won’t have adequate retirement income, and that is assuming interest rates go back up in 2014. Even a 1-2 percent increase in the after inflation return can make a huge difference in what you will be able to earn and spend in retirement.