How much should I save for retirement?

Be careful about using any supposed "general guidlines" for retirement savings. You need a retirement plan unique to you. Everybody is different: things to do in retirement, spending habits/needs, retirement resources (SS, pension, investments, other), life expectancy to sustain, married vs. single, healthcare or long term care needs, and so on.
The financial industry loves to trot out rules of thumb like "make sure you've saved enough to sustain spending equal to 80% to 85% of your pre-retirement income." Some people will need more than that, others won't need nearly so much. And aside from the healthcare wildcard, almost everybody spends less money over time during retirement. Commonly I see the active "go-go years" of earlier retirement, "slow-go years" of mid-retirement, and the "no-go years" when life often slows down in later retirement.
David Blanchett, head of Morningstar's retirement research, estimates that most folks will need roughly 54% to 87% of their pre-retirement net income (depending on how much "pre-tax expenses" they paid before retiring, like retirement plan contributions and Social Security taxes). Check out How Much Income Do Retirees Really Need? for helpful additional information.
Rules of thumb are OK if we treat them as such. But if you're nearing retirement's doorstep (say, within 5 years) and an adviser is talking "85% rule of thumb," for example, show him the door. You need a real retirement planner and specialist to help you map-out in greater detail what your actual needs are going to be.
And your second question...If you reach normal retirement age (however you define that) and find yourself running short, some options include:

• working longer, if health permits
  
• working longer and delaying the claim of Social Security (if you don't have any reason to believe your life expectancy will be shorter than the averages)
  
• reduce spending expectations
  
• tap home equity if you own your home
  

I hope this helps. All the best!

Thanks for the question -- this is the key financial planning question for most people!

There is no general guideline, because there are so many variables that go into your unique, individual situation. These include:

+ Current age

+ Expected Retirement Age

+ Current Savings and Investments

+ Desired Income during retirement

+ Home ownwership vs. rent

+ Marriage situation

+ Your ability to tolerate investment risk.

+ Your past earning history

If you see someone out there saying "you need to have X% of your income at age Y"...well, those are just rough guidelines and don't take into account the above factors and many more that are unique to you.

Your best bet may be to contact a qualified financial planner (such as a CFP® professional) and have them advise you on how to prepare for retirement.

If you get to the age you'd like to retire and find that your plans didn't work out, there are several strategies (again, that you could discuss with a planner):

+ Delay retirement

+ Work part-time to offset expenses

+ Rely on social security / adjust social security plans

+ Use cash value of permanent life insurance

+ Take home equity loans, use reverse mortgage, or downsize your home

+ Live more frugally than expected.

Hopefully you and your planner will come up with a retirement solution that works for you!

Please let me know how I can further assist.

Regards,

Chris