How do you want to live?
Another way to phrase this question is "Will your current lifestyle change in retirement?" Because the cost of living generally decreases in retirement, you may need to replace only 70-80% of your current annual income upon your retirement.
This makes sense when you think about it. For example, many people have paid off their homes and are no longer driving to work. However, remember that it is not uncommon for health care expenses to increase in retirement. Every individual is different, so consider your housing situation, travel plans, insurance costs and other monthly expenses when determining how you want to live in retirement.
