Joe's expenses are about $3,500 per month. Use the replacement ratio method to estimate his annual retirement expenses.

Name: Joe's expenses are about $3,500 per month. Use the replacement ratio method to estimate his annual retirement expenses.
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The replacement ratio method suggests that retirees need 70-80% of their pre-retirement income to maintain their standard of living. Joe's annual expenses are $3,500 x 12 = $42,000. 70% of $42,000 is $29,400 and 80% is $33,600.

Joe's Expenses Are About $3,500 Per Month