USA TODAY - What works in theory doesn’t always work in reality.
Low-income workers likely need to replace at least 90% of their final earnings (the bulk of which will come from Social Security), middle-income workers need to replace 70% and workers earning the maximum taxable wage, $128,400 for 2018, may need to replace just 50% of their final earnings."I think the 70% to 80% heuristic that is often quoted is an example of why using the average is sometimes flawed," says Michael Guillemette, an assistant professor at Texas Tech University. "At the end of the day, retirees should base the replacement rate off their expenses and goals."