Deciding how much of your pre-retirement income is needed to sustain your current lifestyle during retirement can help you prepare for a better retirement outcome. Planning for your new sources of income and differing expenses in retirement is key. This month, Dimensional Fund Advisors explains replacement rates, how they change with increased income, and how to use them to plan for your retirement.
Dimensional Fund Advisors LP (“Dimensional”) is an investment advisor registered with the Securities and Exchange Commission. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. This content is distributed for informational purposes, and it is not to be construed as an offer, solicitation, recommendation or endorsement of any particular security, products, or services. This content was made available by Dimensional for use in educating clients or prospects either in person, via website, by email, in a newsletter or through social media platform. Investing entails risks, including possible loss of principal. No representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided. No assurances or guarantees are given regarding the performance of any investment. Returns, share price, and yield will fluctuate and redemption value may be more or less than original cost. Investments in the Dimensional funds are not insured or guaranteed by the US government or any other party. Past performance is no guarantee of future performance.