Glossary · Financial

Income Replacement Ratio

Retirement income as a fraction of pre-retirement pay.

Definition

Income replacement ratio measures retirement income relative to working income. Standard guidance targets 70-80% to maintain quality of life.

How SalaryScopePro uses this term

We surface income replacement ratio across salary results, occupation pages, city pages, and Premium Reports — with consistent definitions and methodology. See methodology and data sources for how the underlying numbers are computed.