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View Poll Results: What percent of current income are you trying to match?
More than 100% 18 14.06%
100% 18 14.06%
90-99% 5 3.91%
80-89% 16 12.50%
70-79% 25 19.53%
60-69% 17 13.28%
50-59% 11 8.59%
Less than 50% 18 14.06%
Voters: 128. You may not vote on this poll

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Old 02-02-2016, 09:00 AM
 
Location: North Idaho
2,184 posts, read 2,114,596 times
Reputation: 2632

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I checked 50-59%.

We were saving 35% of our gross income before retirement, and will not have a mortgage payment, which represented about 8% of our pre-retirement income. We're also moving to a place that has about a 5% lower cost of living. So that should allow us to enjoy a very similar standard of living as we did pre-retirement.

Dave
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Old 02-02-2016, 09:27 AM
 
Location: Chicago area
14,540 posts, read 8,017,528 times
Reputation: 53811
We are around the 80% now since I quit my job and retired early. When I draw my social security and we start collecting from another investment, we will be over the 100% target. We're doing fine on the 80% and still don't spend anywhere near what comes in every month. I guess I'll just have to learn how to be more of a spender, and less of a hoarder. Yep it's a dirty job but somebody has to do it.
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Old 02-02-2016, 10:13 AM
 
Location: Forests of Maine
30,840 posts, read 49,724,076 times
Reputation: 19304
I have been on pension for almost 14 years.

My Pre-Tax and Post-Tax figures were the same, in both pre-retirement and post-retirement.

My pension is about 25% of what my salary had been.
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Old 02-02-2016, 11:07 AM
 
1,039 posts, read 786,882 times
Reputation: 817
It should be current expenses not current income. Lets say I make 10 million a year and spend 1 million a year.

In retirement why do I need to consider the ten million at all.
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Old 02-02-2016, 11:10 AM
 
Location: Central Massachusetts
4,800 posts, read 4,892,949 times
Reputation: 6393
Quote:
Originally Posted by DelightfulNYC View Post
It should be current expenses not current income. Lets say I make 10 million a year and spend 1 million a year.

In retirement why do I need to consider the ten million at all.


If you don't need the ten million send it to me!
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Old 02-02-2016, 12:03 PM
 
Location: Loudon, TN
5,942 posts, read 4,934,045 times
Reputation: 20079
We retired in our 50's with about 65% of our gross pay. That will go up when we each start SS. We're 5 years apart in age, so our SS will phase in, but when we are receiving both we will be at about 78%. We are fortunate to have employer paid medical/dental retirement plans with reasonable limits and deductibles. We moved to a lower COL/ lower tax state and are enjoying at least the same lifestyle as pre-retirement. When we are in our 70's, we will probably downsize once more.
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Old 02-02-2016, 12:26 PM
 
Location: Northern Wisconsin
8,980 posts, read 7,817,661 times
Reputation: 15503
With my wife retired, our income dropped 1/2 last year. So right now, we're just hoping we can retire on the approximate equivalent to what we are living on with just one income. However, after I retire, we will be cutting our costs even more by selling the house and moving into an RV, so that should lower our cost of living even more. Well, that's the plan. Will it work out? Time will tell.
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Old 02-02-2016, 12:29 PM
 
Location: Denver CO
21,362 posts, read 11,999,239 times
Reputation: 32542
Quote:
Originally Posted by DelightfulNYC View Post
It should be current expenses not current income. Lets say I make 10 million a year and spend 1 million a year.

In retirement why do I need to consider the ten million at all.
Then your number would be 10% of your income to match your current lifestyle without savings. Most people don't live on 10% of what they make, of course, so figuring out the percent of your current income is a reasonable back of the envelope way to think about your needs in retirement.

For instance, if I'm saving 15% for retirement, then presumably, I could keep my current lifestyle on 85% - assuming of course that my retirement savings, pension, SS, etc. added up to enough to meet that figure and I wasn't trying to save in early retirement to help fund later retirement.
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Old 02-02-2016, 01:35 PM
 
14,246 posts, read 7,617,970 times
Reputation: 26041
I'm fairly high income. My Social Security at FRA only replaces 19.85% of my base pay. I don't have a pension. No way I'm going to replace even 50% of my income. ...but I've already planned for that.
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Old 02-02-2016, 02:05 PM
 
Location: NE Mississippi
13,872 posts, read 8,718,472 times
Reputation: 20194
100%

We retired in 2010. Neither of us had a significant pension, but both had high Social Security earnings. We also had rental properties (2) that were paid for since we have had them over 30 years.

So we went backwards. We figured out what our income would be when we retired, and we started living on that amount way back in '05.
That made our retirement seamless. Our income is the same now that it has always been.

How we managed money:
Everything we made - every penny - went into a money market account. Then, the first of every month we would have the "correct" amount transferred into the checking account so we could spend it. The saved money piled up very rapidly.
Now, 5 years into retirement we still have every bit of that saved money still in our money market account; actually, a little more, because it costs less to live when you are retired - at least for us, it does. We call the money market account our "bucket". During the month our sources of income get poured into the bucket and once a month we dip some out. Payday is every month on the 1st.
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