After you set your retirement age, you’ll want to estimate how much money you’ll need in retirement.
Think of this as your “retirement paycheque” – it’s basically your salary, but instead of coming from your 9-to-5, it comes from all your retirement income sources.
For most people, your retirement paycheque can actually be smaller than your working paycheque.
As a rule of thumb, you’ll likely need between 60% and 85% of your current pre-tax income to maintain your standard of living in retirement.
As you may have seen through your Common Wealth enrollment, once you enter your income, we’ll suggest a target retirement income as a percentage.
The retirement income target we give you is in today’s dollars. You don’t need to factor in inflation – our calculations behind the scenes are already handling that for you.
