Target replacement rate Conclusion You will have noticed that your pre-retirement consumption is $30,000-$5,646 24,354;but the real retirement income is only $22,500 The next method equates consumption .THE COURSE OF FINANCE 2017 SPRING SJTU 8Target replacement rate Conclusion  You will have noticed that your pre-retirement consumption is $30,000 - $5,646 = 24,354; but the real retirement income is only $22,500  The next method equates consumption •THE COURSE OF FINANCE 2017 SPRING SJTU •8