How Much Retirement Income Do You Need?

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>> How much income will I need in retirement? This is one of the most frequently asked questions that I fielded as a financial planner. Most research indicates that during an average retirement you'll need 70 to 80% of your pre-retirement income to maintain the standard of living you enjoy while working. The reasoning is that you don't need to reproduce your full paycheck because you'll no longer have work related expenses like commuting costs and social security taxes. To that thinking I would say who wants an average retirement income string?

Background sounds There's no magic formula for your retirement income calculation so to protect against unpleasant surprises sit down and estimate your expenses yourself. Review your current spending and adjust it based on the ways your expenses are likely to change after you retire.

Background sounds Sure you may have lower commuting costs but your medical costs are likely to rise too. If you're lucky enough not to have a mortgage you may want to spend more on travel and recreation. Take pencil to pad

Background music and do a little homework after all average is just so average.

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