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How much do you need per month in retirement?
Explanation:
A good rule of thumb is to use 80% of your current monthly expenses (i.e. TOTAL_EXPENSES), which equates to DEFAULT_RETIREMENT_EXPENSES.
This rule is based on the assumption that certain essential costs of living may remain the same—and some costs may go down, such as work expenses, taxes, and mortgage payments. However, costs in the later years of retirement can often be a function of health and longevity, with medical and long-term care costs warranting a larger percentage of income. Using a higher percent guideline is better if you’re more conservative.