How Much of Your Income Will You Need to Replace in Retirement?

Social Security benefits are designed to replace around 40% of your pre-retirement income. Unless you have a pension, any additional money you need has to come from savings.

That means it's important to understand how much of your pre-retirement income you'll actually need to live on. Figuring this out can help you decide if you're ready to retire, since otherwise it might be difficult to estimate just how much money your investments need to produce for you.

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Source Fool.com