Calculate Your Retirement Needs with our Wage Replacement Ratio Quiz
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Questions and Answers

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?

  • 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?

  • 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
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