Beyond the nest egg. Understand the **Monthly Cash Flow** required to sustain your current standard of living without a traditional paycheck.
AdSense/YMYL Compliance Notice: This estimator provides mathematical replacement simulations for educational purposes. It does not account for individualized medical needs, specialized insurance requirements, or future government policy changes regarding Social Security.
Include rent/mortgage, taxes, and living costs.
Average is 70-85% for lifestyle parity.
Based on your government benefit estimate.
Include rent/mortgage, taxes, and living costs.
Average is 70-85% for lifestyle parity.
Based on your government benefit estimate.
When you stop working, wealth is no longer about the size of your portfolioâit is about the Durability of your Cash Flow. The replacement ratio determines if you can maintain your current standard of living or if you must downsize.
The standard target is 80% of your pre-retirement gross income. This accounts for the natural reduction in taxes and the elimination of work-related costs.
Certain costs disappear once you transition out of the workforce, naturally lowering your income requirement.
| Eliminated Cost | Typical Saving | Rationale |
|---|---|---|
| Payroll Taxes | 7.65% | FICA taxes are tied to employment income. |
| Retirement Deposits | 10% - 20% | You are now in the distribution phase. |
| Commuting & Workwear | 5% - 10% | No fuel, parking, or lifestyle "dress" costs. |
Select a target ratio based on your intended retirement intensity:
Replicates your exact current lifestyle, allowing for moderate travel and entertainment.
For those who plan to travel globally or pursue high-cost luxury hobbies in retirement.