Retirement Myth #2: I’ll Only Need 80% of My Income
Find out why the classic 80% rule may not account for all of your retirement expenses.
How much will you need to ensure you don't outlive your money? Historically, experts have suggested you need 80 percent of your pre-retirement income to live comfortably in retirement. For many people, however, the 80 percent rule may no longer apply. Consider that:
- Health insurance costs may be higher.
- You may spend more on travel or recreational activities.
- Your children or grandchildren may need your support.
- Without deductions, you may fall into a higher tax bracket.
There is a more accurate way to predict your income needs in retirement.
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