Forget Rules Of Thumb – And Calculate Your Individualized Income Replacement Rate
While there are some general rules of thumb for retirement income-replacement rates (e.g. 75% to 80% of working income), pinning down your individualized retirement cash flow needs can be difficult. As the author of today’s article notes, “higher-income, higher-saving households may well need just 60% (or even less) of their pre-retirement income during retirement, while lower-earning, lower-saving households may need…