Decoding the 80% rule: How much money do you really need to retire comfortably

Start by listing your essential expenses like rent, food, and healthcare, then add lifestyle costs such as travel, hobbies, and entertainment. Next, subtract your expected income from sources like pension or rent. The gap you get shows how much more you need to save. To find your total savings goal, multiply your annual income need by the number of years you expect to be retired.