This study estimates the consumption needs of preretired households through target replacement ratio approach. Based on the Life Cycle Model, this study used the household expenditure function to derive the target replacement ratio appropriate for each household. The target replacement ratio is estimated using the 1996 National Survey of family Income and Expenditure by National Statistical Office. The estimated target replacement ratio was 82.4% for married couple households, and 85.1% for single households. Total retirement consumption needs during entire retirement period was 161,620,000 won for married couple households, and 50,532,039 won for single households.