I was looking through my 401k account on the bank website. One part of the dashboard says "You may have a shortfall" and a bar graph showing it thinks I need to replace 80% of my annual pay in retirement. OK, I get that. But looking at their math, their "monthly income" that they are basing it on is twice my current pay.
Based on the info I put in for my planning, retirement would be 21 years away. I'm earning a bit more than average for my position, maybe in the 70th percentile. I was thinking it presumed inflation or such was being taken into account, but in my field, and from what I see all around, salaries certainly haven't doubled in the past 21 years.
Is there a logical reason for setting that bar in offering advice? (I double-checked that the bank had my correct current salary) Or might this just be pushing to invest a bit more to hit that goal, and thus some more fees they can collect?
Submitted September 29, 2020 at 08:20PM by jrrybock https://ift.tt/36ou2HL
