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It's not just income but also expenses. I lived on less than half of what I made so my gross retirement income even though it will be less than work income, the "takehome" retirement income should be higher than my takehome pay from work and with no mortgage in retirement our expenses will be less in retirement than when working so by combining higher takehome and lower expenses finally we should have extra money for the monthly goodies!
The poll is no shock. It would be more interesting to poll how much less, maybe in quarters (closest to 25%, 50%, 75% or 100% of former or current salary)
Right I thought the OP was asking in the context of taxable income as a result of taxation and Roth/401/403/Taxable investments during their working years playing out in retirement. This is a difficult thing to ask and zero in on in a broad general forum as many readers and posters aren't very heavily invested nor have pensions etc for their to be much of a difference. Almost eight years in I have come to some realizations about retirement income and taxes. Enjoy the blessing of having the income that distributions are a tax concern as many would love to have your problem. No one wants to pay taxes but sometimes having that problem is comforting.
Specifically about this context I would say I've always been in the 25% bracket while working and more than likely will be in the 15% bracket in retirement but would have more spendable disposable income due to higher takehome retirement income and lower expenses.
Income is less, lots less even with a pension and retirement savings plan. I do not plan on starting to use the retirement savings plan for some years.
But my expenses will be lots less too. Currently I am paying for my home I live in and my retirement home. After retirement I will only have the less expensive of the two to fund. And its in a lower taxed / cost of living location. Hoping to make the money from the sale of the primary residence to pay off the retirement home and live on that extra $ for a while...plus do improvements to the retirement home.
The cash flow will be fine Just less of it...and less expenses.
Specifically about this context I would say I've always been in the 25% bracket while working and more than likely will be in the 15% bracket in retirement but would have more spendable disposable income due to higher takehome retirement income and lower expenses.
That is the sweet spot taxes aside. Having more disposable income in retirement. Congrats!
Not to beat a dead horse but in 2 1/2 years we will get a real big boost in retirement income when I start to collect my age 70 SS benefits add on top of that RMD's and oh well...... As noted in other threads we wanted to stagger our retirement income kicking in. So minimizing taxes is important but because of solid defined benefit income I wanted to construct a known income flow during our 70's and hopefully be well positioned for our age 80's. As I have mentioned before the primary goal was maximum fixed income for the surviving spouse and that is mission accomplished. Oh well as long as I live 2 1/2 more years.
I'd say our income is now about the same as it was. That wasn't so at first, but our income increased lately. The difference is that our expenses have gone way down.
What is far more important, IMO, is having access to large-ish sums of cash. This has been a big concern for us at all stages of our lives, not just in retirement. It helps us avoid debt, which we both despise. The ability to withdraw substantial amounts of cash at any time, without penalty, is more important to us than having a higher income. We don't spend our full income, as it is.
I have said this before. It is not how much you make, it is how much you spend.
Also being debt free really puts you in control.
I would modify that a bit and factor in debt to income ratio. 20k annual retirement income with no debt vs 150K annual income with 15 percent a year debt is a no brainer of a choice to some. I understand your point but the ability to leverage assets in retirement is still a strategy if used properly.
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Just less of it...and less expenses.
