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Questions and Answers
What is a wage replacement ratio?
What is a wage replacement ratio?
- A ratio that determines how much of your pre-retirement income you’ll need to maintain your current lifestyle during retirement (correct)
- A ratio that determines how much of your future income you’ll need to maintain your current lifestyle during retirement
- A ratio that determines how much of your current income you’ll need to maintain your current lifestyle during retirement
- A ratio that determines how much of your post-retirement income you’ll need to maintain your current lifestyle during retirement
What is the typical industry recommendation for wage replacement ratios?
What is the typical industry recommendation for wage replacement ratios?
- Between 30%-50% of your pre-retirement income
- Between 50%-70% of your pre-retirement income
- Between 90%-100% of your pre-retirement income
- Between 70%-90% of your pre-retirement income (correct)
What is the 4% withdrawal method?
What is the 4% withdrawal method?
- A method that assumes you'll withdraw 4% of your retirement principal each year to live off of (correct)
- A method that assumes you'll withdraw 4% of your current income each year to live off of
- A method that assumes you'll withdraw 4% of your post-retirement income each year to live off of
- A method that assumes you'll withdraw 4% of your pre-retirement income each year to live off of
