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When You Assume…What do You Assume?

Some say that “when you assume…” but the reality is that retirement planning is full of assumptions. While every individual situation is unique, this week, we’d like to know which one(s) you generally use/recommend – at least to start.

Yes, retirement planning is a complicated business, in no small part because of all the individual variables involved. Often you’re sitting down with an individual who has no real sense of key decision points – including at what age they expect to…retire.

So, this week we’ve lined up some key assumptions for your consideration – and we’d like to know what you typically/generally/most often use – at least as a starting point – in those discussions.

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* 1. Generally speaking, what do you use as a starting assumption for retirement age?

66 2/3

70 1/2

Comments on that?

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* 2. Generally speaking, what do you use as a starting assumption for replacement rate of pre-retirement income?

40% (of pre-retirement income)

50%

60%

67%

70%

75%

80%

100%

110%

Don't use that as an assumption.

Comments on that?

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* 3. Generally speaking, what do you use as a starting assumption for Social Security claiming?

full retirement age (FRA)

Comments on that?

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* 4. Generally speaking, do you include a budget/allowance for long-term care?

Yes

Sometimes

Comments on that?

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* 5. Generally speaking, do you assume some kind of standard withdrawal rate?

3.8%

Don't rely on that.

Comments on that?

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* 6. Generally speaking, what rate of inflation do you use?

More than 5%

These days it's a moving target.

I don't take inflation into account.

Comments on that?

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* 7. Any other comments about assumptions, relying on assumptions, trying to pick the best assumptions, retirement plan assumptions in general, changes to retirement plan assumptions, retirement planning projections in general, or life in general?

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* 8. Suggestions for future survey questions?

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* 9. All responses are anonymous and confidential, of course - but if you'd like me to know who you are, or allow for a response, you can leave your email below...