FYI: Q. The retirement income tables I see say you need 85 percent, or less, of your salary in order to retire with enough money to maintain your standard of living. My question: Is that net or gross income? Surely it is net, because it seems that gross that would give you way more retirement income than you need. But since I don’t know exactly how those retirement calculators work, I am confused.
For example, my take home pay is $72,000 a year, so in retirement my need would be about $61,200. But my actual salary is $122,000 (with 85 percent being $103,700). I recently plugged all my info into the Wells Fargo Retirement calculator, but used my annual salary figure. But shouldn’t I use my take home salary? ---K.L, from Dallas, TX
Regards,
Ted
https://assetbuilder.com/knowledge-center/articles/retirement-calculators-overstate-how-much-we-need-to-save-for-retirement
