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How Much Money Will You Need?

Retirement Income Needs

Most experts agree that you will need between 70% and 90% of your current income, adjusted for inflation, to live comfortably during retirement.

When you retire, some living costs may go down.

  • You may own your home, free and clear.
  • You will not have work-related expenses for commuting, child care, special clothing or eating out.
  • You may no longer have the expenses associated with raising a family.
  • You may pay less income tax if you are in a lower tax bracket.

As you get older, other costs may go up.

  • Higher expenses for medical insurance and health care are likely.
  • Filling your increased leisure hours with enjoyable activities may cost more.
  • An upgrade of your lifestyle, extensive travel, or the purchase of a vacation home or RV may require more than 70%-90% of your current income.

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