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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The biggest thing most people forget is that once you're IN retirement [b]you stop SAVING for retirement.[/b]

Chances are, you're already living on less than 100% of your actual income, because you're socking a chunk of it away.

Start with your actual take home pay, subtract expenses you won't have in retirement and add/increase expenses that could rise. You'll eat out more, travel more, take up hobbies, your cars may need work/replacing, house will be older/need work. Etc.

Better to be conservative, but I agree most retirees with few major expenses don't need 80% of their income to live well.

[/quote]

You also stop paying social security and medicare taxes.[/quote]
dp.. really? They don't take out ss and medicare taxes on retirement distributions?[/quote]

They are payroll taxes so you don't pay them if you are not receiving wages.

This explains it in more detail: https://www.realized1031.com/blog/do-you-pay-fica-on-retirement-income

[/quote]
PP here. Thanks. I didn't know that.  [/quote]

DP: This is a source of complaint of tax inequality bc people with low income pay a high percentage of their income in payroll taxes, while there's a cap on how much income you pay payroll taxes and there are no payroll taxes on capital gains, retirement income etc.[/quote]

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