AVERAGE RATE OF RETURN
Returns vary greatly depending on asset allocation and other factors. A portfolio fully invested in US stocks from 1926 to 2016 grew an average of 9.9% per year, while a portfolio of 10-year US government bonds grew approximately 5.2%. Past performance is no guarantee of future returns.
DEFAULT INCOME REPLACEMENT RATE
Although everyone is different, as a general rule, most people require about 80% of their preretirement income to maintain their current lifestyle during retirement. That means if you make $50,000 a year right before retirement, you’ll probably need about $40,000 a year during retirement. Most people’s required retirement income is lower because they’re no longer paying the costs of working (gas prices, dry cleaning, etc.), tax bills are usually lower, mortgages may be paid for, and children likely no longer require financial support.
HOW TO ESTIMATE YOUR SOCIAL SECURITY BENEFITS
You can get an individual benefit estimate based on your current earnings from the Social Security Quick Calculator at Social Security Online. Please note that the benefit estimates made by the Quick Calculator are rough and may not match those provided by your Social Security Statement.