What percentage of income do i need in retirement

What percentage of income do i need in retirement - Weaknesses are that 1) you will likely still have income taxes to pay once you retire, particularly if you’re high income, 2) it won’t be a valid estimate if you are many years away from retirement, and 3) it will be virtually useless if your after-tax income bears no resemblance to what you actually need to live on. Savings factor rule of thumb is based on some key assumptions: you start saving a total of 15% of your income every year starting at age 25, invest more than 50% of your savings in stocks on average over your lifetime, retire at age 67, and plan to maintain your preretirement lifestyle (see footnote 1 for more details). Need to consider how long they want to be in the workforce, who they will be responsible for in retirement, all their sources of income (including social security) and also estimate what their future health costs could be to come up with a clear estimate of their savings needs, kraeblen said. Numbers such as how much money you’ll need to have saved by the time you retire, how much you’ll have to contribute each year in order to reach that goal, and how much you’ll have to earn on your money between now and then.

How Much Income Do You Need in Retirement?

Dimensional Vice President Marlena Lee, PhD, explains how her research on replacement rates can help you prepare for a better ...