What percentage of current income is used in the income replacement method?

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The income replacement method typically recommends replacing 80% of one's current income in order to maintain their standard of living after retirement. This is because many expenses, such as mortgage payments and work-related expenses, may decrease in retirement, but healthcare and leisure expenses may increase. Therefore, 80% is a good estimate to balance these factors and ensure a comfortable retirement.

What Percentage of Current Income Is Used in the Income