So when it comes to the size of your nest egg, i.e. amount of money. What this means is the nest egg that you have at the point of retirement has to last as long as you do. Typically, a person who retires at age 65 can expect to be retired for and live up to 20 to 30 years on. What this means is your nest egg has to last 20 to 30 years.

In our earlier videos, we spoke about cost of living, health care, insurance, and so on during your retirement. So this has to be factored in to your retirement expenses.

One of the most important questions you need to answer is how long will you be retired for? And how much money do you need at the point of retirement?

For example, if I had a million dollars at the point of retirement, I could have $6,000 a month in income for the next 20 years, assuming that that money generates 4% per year.

So the next question is, how do I get $1 million at age 65? Let's do some math.

How long do I have till retirement?

The first thing I need to know is how long do I have till retirement? Is it 20, 25 or 30 years?

To get $1 million at 8% per annum returns, assuming you're invested, in 20 years, I need to save $1,700 per month to get a million dollars in 20 years. And if I have 25 years, that number drops to $1,000 a month.

And if I have 30 years, all I have to do is put aside $700 a month for the next 30 years to get a million dollars. Now this is assuming that you're invested and it's earning 8% per annum.

What do you invest in to get that million dollars?

For example, if you put your money into a fixed deposit, it probably gives you about one to 2% per annum.

If you put your money into an endowment plan or a savings plan by insurance product, it probably gets you about two to 3%. Of course, you could also put the money into bonds, we will generate about three to 4% per annum. And if you use a unit trust or mutual fund, you can expect to get six to 8% per annum. And of course, if you use stocks and ETFs you could get 8% to 12% per annum. We've covered this in some of our earlier videos.

And so there you have it, when it comes to retirement and money, you'll have to think about (1) how much money you need to sustain yourself during retirement and (2) how much you need to save every month to be able to reach that nest egg.

How have you been planning your money for retirement? Tell us in the comments below and share with others who might find it helpful too!