Dorset Style - 06. Kingmaker
Replacement characters, whether due to death or retirement, will come in at 50% of the previous character’s total experience points value. This will generally place the character a little under 2 levels lower than the previous character (so losing a character close to level may well only result in a single level drop).
The exception to this is where this would mean that the character would begin 2 or more levels below the current lowest active party member, in which case the character will begin at the start of the level below the lowest active character.
All new characters starting above level 1 will begin starting gold equal to 1/4 of the Character wealth by level, meaning that they can potentially start with some basic items, but will not be able to do a “perfect spread,” or any individual item liable to be game-breaking.