New Retirement Income Rule

This article talks about the old retirement rule of needing 80% of your pre-retirement income in retirement. It should be a pretty simple concept that this is just a general rule and depending on what you do in retirement that percentage could be off by quite a bit. If you are going to travel the world in your retirement that is going to cost you more that you are currently spending on bills and the grocery store. If you plan to live in the room over your child's garage and play with the grand kids all day then you could possibly need a lot less than that. This article just points out that you need to plan out what your expenses will be in retirement to know what percentage of pre-retirement income you will need. (Ask the Mole: Retirement - How Much You'll Really Need)