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About Summit Wealth Advocates

Marlena Lee, a Vice President at Dimensional Fund Advisors, recently performed a study assessing how much of their current income people would need to live on in retirement.  Here is what she found:

  • The bottom quartile of earners (those who make less than $26,000), will need as much as 82% of their current working income to live comfortably in retirement.  Social Security will replace the majority of that income, leaving this group to replace approximately 23% of their final salaries.
  • For those earning $50,000 to $87,000, they will need to replace approximately 62% of their last salary to live comfortably in retirement.  Social Security will replace approximately 31% of that income, leaving the retiree to replace the remaining 31%.
  • For those earning over $87,000, they will need approximately 58% of their current working income and Social Security will replace as much s 21% of that figure.  This leaves the retiree to replace the remaining 37% with their portfolio.

All of the above means you may need much less than you might expect to live comfortably in retirement.  A bit of counsel we provide clients is to begin living as if you are retired (before you actually retire) so you can get a good feel for what you can expect your annual lifestyle needs to be before you actually call it quits.

North Metro: 763.355.5873
227 East River Parkway
Champlin, MN 55316-5873

South Metro: 612.987.9112
5871 Crossandra Street SE
Prior Lake, MN 55372-3337

West Metro: 763.639.3425
322 Greenhill Lane
Long Lake, MN 55356

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