Retirement savers are often discouraged by the large number they get from retirement savings calculators and financial advisers. Let's say you need $2,500 per month to live comfortably in retirement. You will need to have $1.5 million in your retirement portfolio to produce this monthly income using a "safe" 4 percent annual withdrawal rate that is likely to allow your savings to last for 30 years.
Over a million dollars is already an inconceivable number for most of us to grasp fully, and our monthly expenses will probably be more than $2,500. The higher your monthly expenses, the bigger the retirement fund you need to have. This big retirement goal discourages most regular people so much that they just ignore retirement investing.