... first bit of good news was that the conventional wisdom on how much income we need to replace at retirement, usually called the replacement rate, is too high. We don’t need to replace 75 to 85 percent of our income at retirement; a more realistic figure is 60 to 80 percent, depending on your income level while working.
This finding is a big, big deal. Every bit of income that we don’t need to replace at retirement takes pressure off the need to save. Add the fact that Social Security benefits provide a hefty slug of income replacement for most Americans and what may seem to be an impossible project becomes possible.
[...] Readers who don’t save much are likely to think her calculated savings rates are punishingly high. In fact, they are close to what real people actually do. When employer contributions are counted, she points out; the Survey of Consumer Finances shows that median total plan contributions range from 8 to 12 percent of income, not much lower than her calculated need of 10 to 15 percent.
Have a plan with a good employer match, and getting to a well-funded retirement becomes a “we can do this” project.