What is the 70% rule for pension?

Financial planning experts estimate that to maintain a standard of living, you need a retirement income of at least 70% of the gross salary you were receiving before retirement. An income that is lower than your current employment income will be enough, as many expenses will be reduced or eliminated by retirement. You need to view the 70% rule as a general guideline. Depending on the lifestyle that you want in retirement and based on your personal situation, this percentage could be too high or too low for you. Remember to consider unexpected events and healthcare expenses, which are very high, as well as the estimated length of your retirement.