Certified Senior Advisor (CSA) Practice Test

Question: 1 / 400

What percentage of pre-retirement, pre-tax income is typically recommended for seniors to maintain in retirement?

60%

70%

To maintain a similar lifestyle in retirement, it is generally recommended that seniors aim to replace about 70% to 80% of their pre-retirement, pre-tax income. This percentage reflects the income needed to cover essential living expenses, healthcare, and personal spending after retirement.

Opting for 80% as a target allows for some cushion, accommodating increased healthcare costs and potential unforeseen expenses that often arise during retirement years. It recognizes that some expenses, such as commuting costs for work, may decrease, but other costs, particularly related to healthcare, can increase.

While lower percentages might suffice for some individuals depending on their unique circumstances and changes in spending patterns post-retirement, aiming for 80% is a practical guideline for ensuring financial stability and comfort throughout retirement.

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80%

90%

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