There is a common rule of thumb that suggests you will need about 80% of your current expenses during retirement. Although a convenient assumption, if you think about it for a minute, it likely isn't true. Some people dream of a retirement with cruise ships, warm water, and fruity drinks. Others, look forward to spending a week or two at the lake. Some want vacation property; others just dream of Sunday dinners surrounded by children and grandkids.
Your vision for your retirement will determine how much money you will need.
Now, there are some trends about retirement income. Low income individuals need nearly as much in retirement as they make while working because their monthly expenses consist of paying all the necessary bills with little money left. If someone rents, not owns, and has little "spending" money, they will have virtually no difference between working and retirement.
Middle class families often see a decline in expenses, as houses are paid off, working expenses minimize, and retirement plans are modest.
However, upper-middle to upper class families may actually see an increase in retirement expenses, as the desire for living the good life leads to second mortgages and expenses.
Just be careful not to accept immediately a vision of your retirement provided by someone who doesn't know you!
Be prosperous!
Peggy
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