Jake and Diann are middle-aged and are preparing for their retirement in twenty years. If they want to maintain their current lifestyle, they will need an income equal to what percent of their current annual expenditures (adjusted for inflation)?

Question

Quizplus · Accepted Answer

Typically, financial planners suggest that retirees will need about 70% to 80% of their pre-retirement income to maintain their lifestyle in retirement. This accounts for reduced expenses in retirement, such as commuting costs, work attire, and lower taxes. Therefore, 75 percent is a reasonable estimate.

Jake and Diann Are Middle-Aged and Are Preparing for Their