You'll often hear that retiring on Social Security alone isn't a good idea because those benefits will only replace about 40% of your pre-retirement wages. And that 40% figure assumes two things: you earn an average income and benefits aren't slashed broadly once Social Security's trust funds run out of money. If the latter happens, you'll get even less replacement income out of Social Security.

While you may be aware that it's important to have savings to fall back on in addition to Social Security, the question is, how much of a nest egg do you need? That's not an easy question to answer, but here's how to tackle it.

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Source Fool.com