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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