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Retirement income projections often overstate the amount needed, according to a Morningstar analysis, which suggests that forecast should take a more individual approach.

“There are three common assumptions that many software tools and financial advisors use to come up with a retirement savings goal – a 70 or 80 percent replacement rate based on pre-retirement income, an income need that rises with inflation, and a 30-year retirement time horizon,” David Blanchett, head of retirement research for Morningstar Investment Management, said in a news release. “When we looked at actual retiree spending patterns and life expectancy, however, we find that these assumptions don’t hold true for many people.”

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