ArcaMax

The monthly need will be reduced by any income you anticipate receiving in retirement, including pensions, passive income from rental property or a trust, the income generated from your nest egg (savings, investments, retirement accounts), and of course, the all-important Social Security benefit that you will claim.

Before you write in and ask me whether or not Social Security will be there for you, the answer is yes, I believe it will be there.

Social Security is the most popular government program and despite political rhetoric about cutting it, what is more likely is that the system will change to bolster its finances.

That could mean higher FICA taxes or perhaps a larger share of earned income being taxed, in order to restore benefits to 100 percent of what has been promised, instead of the current numbers, which show that after 2033, the government will only be able to pay 77% of scheduled benefits.

Back to your retirement calculations...

For many of you, the output may be unnerving. You might find that living to 100 means that you are going to have to save more money today. Or, you may have to work longer, though not necessarily doing the same thing.

Many folks in their 40s find that they can transition to a different career or job in their 50s and 60s, one that will allow them to reach their ultimate goals, with a little less stress. I call this an "off-ramp," a way to slow down, without screeching to a dead halt.

But you can only find that off-ramp if you put in some of the work upfront. In other words: you can actually influence your “magic number,” but only if you stop guessing and start planning.

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(Jill Schlesinger, CFP, is a CBS News business analyst. A former options trader and CIO of an investment advisory firm, she welcomes comments and questions at askjill@jillonmoney.com. Check her website at www.jillonmoney.com)

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