Retirement Income Needs

The total amount of savings that allows a client to sustain the standard of living enjoyed just prior to retirement throughout the retirement period.

Golden Handshakes

An incentive offer by an employer made to an employee to encourage early retirement.

Income Requirement Assumption

Represents the planner's estimation of the level of income needed by retirees to sustain the standard of living they enjoyed just prior to retirement through their retired life.

Replacement-Ratio Approach

The measure of a person's financial need as a percentage of final salary.

Expense Method

To measure a person's financial need by using a retirement budget.

Step-up Rate

The rate by which savings are increased each year. The rate usually parallels expected salary increases.