04/10/2015 10:45 am ET Updated Apr 10, 2015

Why You Need Less Money For Retirement Than You Think

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Conventional wisdom says you need retirement income equal to 80 percent of your final salary. But there is a decent chance you could happily retire with far less.

Let’s start with reality: Most of us don’t have a well-honed financial plan in which we set out to amass a specific sum and quit the workforce only when we hit our target. Instead, we save what we can and then make do.

If that means retiring with less than 80 percent, I wouldn’t be overly concerned. Consider a 2014 survey of recent retirees by Baltimore’s T. Rowe Price Group.

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