What kind of income will I need when I'm retired?

It's impossible to say exactly how much you'll need when you retire, in part because the amount will be based on so many variables. Someone who owns a home debt-free and is in perfect health, for example, will have lower expenses than a frail person who must live in a nursing home with round-the-clock care. As a general rule, experts say you will need about 75% percent of your current gross monthly income to maintain a similar lifestyle after you quit working. So, if you're grossing (before taxes) $4,000 a month now, figure on needing perhaps $3,000 a month when you retire. However, if you plan to do a lot more traveling or take up an expensive hobby, you might need considerably more than that.

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