investing in your future
How Much Will You Need for Retirement?
Planning for retirement, one of the biggest questions we all confront is: How much income will I need to live? There is no set answer to this question, because each person’s needs vary. In general, how much replacement income do experts say we’ll need to live comfortably during retirement?
- 35 to 45 percent of our pre-retirement income
- 50 to 65 percent of our pre-retirement income
- 80 to 90 percent of our pre-retirement income
“C” is correct. Some experts even suggest we’ll need 100 percent, because factors like inflation may increase what it costs to live. During retirement, some expenses get smaller, like those that are job related. Others may rise: Older adults have more medical expenses. Whenever possible, take advantage of tax incentives to maximize the amount of retirement income you’re saving. Click here to calculate how much income you’ll need to get by.