income replacement ratio


The percentage of working income that an individual needs to maintain the same standard of living in retirement; usually 60-90%.

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You should try and figure out a way to use the income replacement ratio to decide your next path to take.

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The financial representative stated that their income replacement ratio would need to be 80% to continue their same standard of living.

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My grandparents are meeting with a Financial Advisor tomorrow evening to determine how much is in their retirement funds, they'll be using an income replacement ratio of 70% and hope they'll have enough income to avoid working ever again.

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income replacement ratio