How Much Income Do I Need In Retirement?

How much income do you need in retirement? There are 2 easy ways to calculate this.

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The first method is the Income Replacement Ratio. The general rule of thumb is 70% to 80% of your current income you will need in retirement.

It’s just a rule of thumb and should be used as a starting point.

The second method is the Specific Expense Method. Add up your monthly expenses to get an idea of what it takes to live your everyday life.

This figure may be very close to what you calculated under the Income Replacement Ratio method. If not, dig a little deeper to make sure you have your income numbers right.

It’s very important to have a good idea of the level of income you will need in retirement. It is one of the first steps when putting together a retirement plan.

To download your free copy of How To Avoid Annuity Traps, just click here: http://retirementplanningmadeeasy.com/annuity-traps

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