Retirement Income

 

 

 

Most people will have to replace 70-90% of their current income at retirement age.  Many will want to replace 100% of their pre-retirement income.  Because we are living longer and healthier lives, we can expect to live 20 plus years after retirement and to be more active at an older age than previous generations. 

 

Then there is the inflation factor.  Your accumulated nest egg will be worth much less in purchasing power because of it.  Suppose we have an average annual rate of inflation of 4%.  If you have $20,000 in current savings, that $20,000 would have to grow to $43,800 to have the same purchasing power 20 years from now.

 

 

Your thoughts on this subject?  Your comments appreciated!

 

Content © Rich Brott, 2011

 email to a friend