It’s one of the most widely accepted benchmarks in retirement planning: You’ll need just 70% to 80% of your pre-retirement income to maintain the same standard of living when you leave work behind. This rule of thumb can be traced to the replacement-ratio studies done for 20 years by Aon Consulting and Georgia State University. The idea is that since you’ll no longer have to plow money into 401 (k) s and other accounts and your expenses and taxes are likely to drop, you’ll be able to live well on less.
