Are we saving enough for retirement?

Prior to this year, I had not thought much about saving for retirement because we just didn't have the extra money. I believe my husband is contributing 6% of his income to his 401k, and I was putting in a little in my IRA whenever I could. But other than that, we had been too busy putting out our current financial fires to really think much about our future. Now that my latest wealth goal includes fully funding my Roth IRA, I have been wondering if we are saving enough for retirement. My husband recently celebrated his 34th birthday and now retirement is only 31 short years away! I plugged our current numbers into MSN's retirement calculator. I believe my husband's 401k balance is somewhere around $60K, and I have $20K in my IRA, and $4K in an old 401k. So our current retirement balance is $84,000. Assuming I continue to contribute $5,000 a year into my IRA and my husband contributes 6% of his income into his 401k, the inflation rate is no higher than 3%, the return on the investments is 8%, and we only would live on 75% of our salary, we'd run out of money by age 78.

According to the projections, we need to save almost $6,000 more per year to make it to age 85. If I change the figures to age 90, we need to save $10,290 per year before tax or $858 a month. I wonder if I could convince my husband to open an IRA next year and if he contributes $5,000 per year, we'd at least get closer to making it to age 85. Another shocking thing is we need to have almost $3 Million in just 31 years to retire comfortably! Wowzers! It makes my $13/hour wage seem like nothing!