While federal tax rates are scheduled to revert to pre-2018 levels after 2025, those rates are not reflected in these calculations.ĭata and Assumptions about You. The Non-Social Security Income Replacement Ratio, which varies widely for the Tested Salaries, reflects estimated spending needs in retirement (including a 5% reduction from preretirement levels) Social Security benefits (using the SSA.gov Quick Calculator assuming claiming at full retirement ages and the Social Security Administration's assumed earnings history pattern) state taxes (4% of income, excluding Social Security benefits) and federal taxes (based on rates as of January 1, 2019).

(That withdrawal amount divided by preretirement income equals the “Non-Social Security Income Replacement Ratio”). The withdrawal amount is calculated as the income that we estimate is necessary to support spending in retirement minus estimated Social Security benefits. In determining the target savings range at retirement, we assume 4% of assets will be withdrawn at age 65 (an annual withdrawal rate intended to support steady inflation adjusted spending over a 30-year retirement).

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