Answered

. Why is it considered a rule of thumb to have 70% income replacement ratio?

Sagot :

Theblackroseviz

Answer:

•Income replacement ratio is a thumb rule to help you estimate this income. Simply, it is the percentage of the pre-retirement income that you are likely to need to maintain a similar standard of life in retirement. ... By this rule of thumb you will need 70% to 80% of pre-retirement income to meet your expenses.