Savings you need to earn $80K, $90K, $100K in interest for retirement

While the thought of adequately funding your retirement can be daunting, if you start planning now, you’ll definitely be grateful later. It’s never too early to start thinking about retirement and it may not be as difficult as you think.

Retirement usually involves replacing your annual salary from a job with other sources of income to sustain your current life. While Social Security may cover part of your budget, there are understandable reasons to be concerned about how much you will receive from Social Security by the time you retire. The rest of your money should probably come from your savings and investments.

CNBC crunched the numbers, and we can tell you how much you need to save today to get $80,000, $90,000 and $100,000 a year in retirement, without taking a bite out of your principal.

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First, there are some ground rules. The figures assume that you will retire at age 65 and that you currently have no money in savings.

Financial advisors generally recommend mixing investments in your transition portfolio to gradually become more conservative as you get closer to retirement. But even in retirement, you’ll probably still have a mix of stocks and bonds, as well as cash. For investing, we assume a conservative annual 6% return while you are working and an even more conservative 3% rate during your “interest-only” retirement.

We also don’t factor in inflation, taxes or any additional income you might get from Social Security or your 401(k) investment plan.

We have a full breakdown of how much you need to save today if your goal is to reach $80,000, $90,000 or $100,000 per year in retirement.

See the video above to learn more.