Will You Really Need to Replace 80% of Your Preretirement Paycheck?
February 2, 2017
ArcaMax - If you have sought advice on how much to save for retirement, you've likely
run across the "80% rule." For a secure retirement, the theory goes, you should aim
to replace roughly 80% of your preretirement paycheck with portfolio withdrawals,
Social Security, pensions and other sources of income. See Also: SLIDE SHOW: 12 Ways
to Go Broke in Retirement
The 80% rule is "imprecise and encourages people to save an amount of money that may
not be needed for spending in retirement," says Michael Finke, professor of personal
financial planning at Texas Tech University. What's more, he says, it "may create
a sense of anxiety among workers whose current savings may seem woefully inadequate."
Read the story here.