Income Replacement Needs Vary by Household Income
Dear Clients and Friends:
Have you considered how much of your pre-retirement income you will need to replace when you retire? For example, if you are currently earning $50,000 per year, to maintain an equivalent lifestyle, how much will you need to draw from your savings and investments each year after you retire? We have provided a graphic that breaks down income replacement needs based on household income. Click here to view the graphic.
The graphic shows that income replacement needs vary widely depending on household income. For example, a household earning pre-retirement income of $50,000 only requires income replacement of 23%, or $11,500, per year during retirement. This household also gets 57% of its retirement income, or $28,500, from Social Security.
On the other hand, a household earning pre-retirement income of $300,000 requires income replacement of 57%, or $171,000, per year during retirement. This household only gets 13% of its post-retirement income, or $39,000, from Social Security.
We encourage you to study the graphic to see where you fall on the spectrum. We sincerely appreciate your continued business and hope that you find the graphic to be both informative and useful. If you have any questions or concerns, please contact Steve at 818.449.3122 or email@example.com.
Very truly yours,
Berkson Asset Management, Inc.
Registered Investment Advisor