Before you start setting targets on how much to save for retirement, it is useful to know how much you'll need once you get there. Circumstances will inevitably change, and your spending habits will as well, but it is recommended to get a rough idea of how much you will spend each year in retirement as a part of your overall retirement plan. Ask yourself the following questions:
How Much Do I Spend Now?
How Will My Retirement Lifestyle Be Different?
How Long Is My Retirement Going To Be For?
Studies show that retirement spending is usually about 60 - 80%. Take a look at what you want to do during retirment and how much that will cost. You will likely spend less as you get older and more accustmed to a life of leisure. Add it all up and you're on your way to getting a rough idea of what you'll need to save.