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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 02-03-2016, 12:37 PM
 
Location: Wasilla, AK
7,382 posts, read 4,247,162 times
Reputation: 16194

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Quote:
Originally Posted by emm74 View Post
You are playing with semantics. Regardless of how you arrive at a calculation of your needs in retirement, $10,000 per month would be some percentage of your current income so you could have answered the question without humble bragging about a specific figure.

This has nothing to do with semantics. It's much easier to determine how much you need each month than it is trying to peg it to a percentage of income. Percentage of income was something created by financial types to obfuscate the issue and make it seem like you really needed their help to determine what you needed...at a cost. When you buy a house you determine how much you can afford each month. You don't base your decision on what percentage of the cost of the house can you afford. The percentage of income needed is something you can compute after you determine how much you need, but it's a pretty useless number as it will differ depending on income, debt and other factors.
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Old 02-03-2016, 12:46 PM
 
Location: NC Piedmont
4,001 posts, read 2,920,386 times
Reputation: 6438
My current contract, which has lasted a long time, is likely to end prior to retirement. It pays significantly above average for my position; I could end up taking a 50% cut just switching jobs before I retire. I could probably get a rate of more than half, but would probably have some time out of work and have to take short term contracts that result in more gaps. So I am prepared for the likelihood of significantly less money.
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Old 02-03-2016, 12:59 PM
 
Location: Denver CO
21,301 posts, read 11,942,567 times
Reputation: 32409
Quote:
Originally Posted by AlaskaErik View Post
This has nothing to do with semantics. It's much easier to determine how much you need each month than it is trying to peg it to a percentage of income. Percentage of income was something created by financial types to obfuscate the issue and make it seem like you really needed their help to determine what you needed...at a cost. When you buy a house you determine how much you can afford each month. You don't base your decision on what percentage of the cost of the house can you afford. The percentage of income needed is something you can compute after you determine how much you need, but it's a pretty useless number as it will differ depending on income, debt and other factors.
And you are still missing or ignoring my point. I didn't ask how people arrived at their estimation, just what it ended up being. If your current income is $120,000, you are looking to achieve 100% of that in retirement. If it's $240,000, you are looking to achieve 50% of it.

Percent is a good estimator because you know how you are doing in relation to your current income, and it's pretty easy to think about whether you are doing well and would like to keep around the same amount so you can continue to same general standard of living, whether you feel like you'd be spending more than you do now so you want to try to achieve more in retirement or if you can see some pretty easy places where you know you'd be cutting back so you can have a similar standard of living on less income.

And fwiw, many people use a percentage of income to think about debt to income ratio and how much they can afford in a mortgage. Not that it's a hard and fast rule and you have to adjust for personal circumstances, but it's a good place to start. Comparing what you anticipate your expenses in retirement to be vs. what you spend now based on income is similarly a place to start.
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Old 02-03-2016, 01:06 PM
 
Location: The Berk in Denver, CO USA
14,098 posts, read 20,510,833 times
Reputation: 22912
110%
SS x 2 + tiny pension ($400/mo fixed) + IRA withdrawals (3-4%) + some part time work ($10K/yr)
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Old 02-03-2016, 01:14 PM
 
Location: Idaho
4,682 posts, read 4,531,048 times
Reputation: 9220
My gross income in retirement will be less than 50% of what I now earn at my jobs, but the net income will be pretty much the same, (in retirement there will be no mortgage or commuter expenses and with a lower tax burden).
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Old 02-03-2016, 02:32 PM
 
Location: New Jersey
120 posts, read 124,917 times
Reputation: 124
I still have some years to go but I'm shooting for 70% give or take. I think it will be enough. I have no kids of my own and my partner (who will be husband by then) only has grown up children who don't need his financial care (or, rarely anyway). We're both down-to-earth types who don't require a lot of fancy stuff but, I probably will want some help in maintaining whatever home we have by then. We can downsize, that won't be an issue as long as we have 1-1/2 bathrooms lol. We might be able to live on less - that remains an unknown. I certainly won't complain if it turns out to be a bigger percentage
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Old 02-03-2016, 03:05 PM
 
Location: Central IL
15,249 posts, read 8,635,993 times
Reputation: 35727
My calculations just happen to come to 80% of my current but that's because I'm saving 20% now and when I'm retired I won't have a mortgage. So that 80% is based on my typical expenses, slightly changed for retirement and then a hefty monthly travel allowance!
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Old 02-03-2016, 05:02 PM
 
Location: Texas
1,977 posts, read 1,389,383 times
Reputation: 6785
About 125%, our savings are more in retirement unintentionally than thru design and diligence during during our working years.
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Old 02-03-2016, 05:31 PM
 
Location: Jamestown, NY
7,841 posts, read 7,371,770 times
Reputation: 13779
My retirement income will be about 90% of my current pre-tax income, but actually will be about the same or more because I won't be saving for retirement any more.
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Old 02-03-2016, 05:52 PM
 
Location: Yavapai County
752 posts, read 491,487 times
Reputation: 943
Quote:
Originally Posted by vicky3vicky View Post
It is a much less expensive lifestyle with a lot more bang for the buck.
This is what I am shooting for. Less than 50%, but more freedom.
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