The answer to this question depends very much on the lifestyle you want and can afford during retirement.

Knowing how much you need to retire starts with determining your retirement readiness. Below are some tips on how to calculate your retirement readiness, and with some planning, retirement may not seem as overwhelming as you think.

The first step in assessing your retirement readiness is to establish when you plan to retire and estimate your life expectancy. While it's impossible to predict precisely how long you'll live, considering factors like family history and personal health can help you make an educated guess. This information will be essential in calculating how many years of retirement you'll need to finance.

Take a broad look at your current financial situation. This involves tallying up all your assets, including savings accounts, investments, real estate, and any other valuable possessions. Then, subtract your liabilities such as mortgage debt, car loans, and credit card balances. The resulting figure will be your net worth, a crucial indicator of your financial health.

You'll need a clear understanding of your anticipated expenses during retirement to have a more accurate estimation of your retirement readiness.

Consider factors like housing costs, healthcare, transportation, food, leisure activities, and any other significant expenses you foresee. Also, the cost of living tends to rise over time, so don't forget to account for inflation.

Compile a list of all potential income sources during retirement. This may include Social Security benefits, pensions, rental income, annuities, and income from investments. Singaporeans, for example, can expect to receive monthly lifelong CPF payouts anytime after they turn 65.

Be realistic and conservative in your estimates, as some income sources may fluctuate or be subject to change.

Once you've determined your expected expenses and income, compare the two figures. If your anticipated expenses surpass your projected income, you'll need to bridge the gap through additional savings or adjustments to your retirement plans.

Based on your assessment, establish an investment plan that aligns with your retirement goals. This may involve increasing contributions to your SRS accounts, exploring alternative investment options, or adjusting your retirement age to allow for more savings.

Assessing your retirement readiness is a crucial step towards securing a comfortable and stress-free future. The Syfe retirement calculator can help you assess your retirement readiness better.

By taking the time to calculate what is needed for your retirement early in life, you'll be better equipped to make informed financial decisions and enjoy your golden years to the fullest. Remember, it's never too early to start planning for your retirement, and the effort you invest now will pay off in the years to come.