Ater talking with retirement plan participants over the past 25 years, I believe most 401(k) plan participants think their retirements will feature:
- No reduction in standard of living. Everyone is expecting to retire and live in the same house, go out to dinner just as often, enjoy vacations with the same frequency, etc.
- More leisure time with the financial resources available to underwrite hobbies, travel, lifestyle, etc.
- An income replacement ratio of 100% or more of pre-retirement income.