One of the hardest questions for people approaching retirement is to figure out how much annual income their retirement savings can generate. That’s the $64,000 question for retirees because they equate income to the living standard they are accustomed to. A careful answer should consider the overall financial picture, retirement horizon, retirement goals, preferences, and each household’s ability to adjust to setbacks. 

We use historical data to define a reasonable range as a starting point, and then point to considerations to help refine what may work for you. The approach should at least help you get started, and help you understand the nature of the question.

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