Use a spreadsheet or a crayon and napkin to determine what your income requirements are in retirement. Using 75% may or may not be representative of what a person needs. Looking at my own needs, I may need only about 25% of current income.If we could see the future or travel through time, we'd know exactly what our income replacement would be. Sure, it could be 25% of final working year household income, just as it could be 42% or 12% or 115%. But longitudinal research has shown that most will fall between 70 to 80%, where the higher the household income, generally, the lower the replacement ratio becomes and the lower the household income, the higher the replacement ratio.http://www.aon.com/about-aon/intellectual-capital/attachment...As one approaches the first retirement year, the actual household cash flow analysis determine the required income, not in a %, but in an actual dollar amount. The further one is from that first year, just like determining the annual funding requirement for a pension, the more one must rely on reasonable assumptions.BruceM
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