By the time you retire, will you have enough money to pay your bills and meet yo
ID: 2723972 • Letter: B
Question
By the time you retire, will you have enough money to pay your bills and meet your needs? What is your number? Go to the AARP Retirement Calculator and follow the step-by-step instructions. You’ll find the calculator at: http://www.aarp.org/work/retirement-planning/retirement_calculator.html#/your-options Just follow the instructions, step-by-step. In Step 1 of the calculator you will enter information that is specific to your situation. In Step 2 your number will be calculated as the “Minimum needed to retire” based on the information that is entered in Step 1. Step 3 will show you the effect of changing your retirement age (say, from 67 to 72) and changing your retirement spending. Once you’ve made the calculations, answer the following questions: 1.What is your number (minimum needed to retire)? 2.Complete a second calculation by delaying your retirement age and/or changing the percentage that you are saving. 3.Write a 250 word summary of 1) what the numbers are and what variables that were used (income, retirement age, saving percentage) 2) how did changing the retirement age and/or savings amount cause the number to change 3) your overall thoughts regarding your retirement plan.
Explanation / Answer
Step 1)
Married -> Age=33 ,partners Age:25,At what Age do you plan to stop working:67,At what Age your partner plan to stop working:67,Your Gender:M and partner's Gender:F
How much are you paid each year: $50000
How much your partner is paid each year: $0
How much of your income do you and your partner save for retirement:10%=$5000
Retirement Savings: how much do you have in your retirement accounts(IRA): $ 1,000,000
how much does your partner have: $0
De you expect to recieve a pension:$35000,Annula Adjustmnt: 5%
Social Security:monthly Amount for you=0,monthly Amount for partner=0
Lifestyle to remain the same.
Step2)
1)minimum needed to retire: $0
2)How much of your income do you and your partner save for retirement:0%=$0(all else remains the same)
minimum needed to retire: $0
3)Variables that were used to find minimum needed to retire are Age=33 and the retirement Age=67,Annual Savings from the salary for retirement=5000 ,the retirement Account savings=$ 1,000,000,Pension Amount expected to receive=35000.Increasing the saving Amount decreases the minimum needed to retire and increasing the retirement age also decreases the minimum needed to retire whereas decreasing the saving Amount increases the minimum needed to retire as well as decreasing the retirement age also increases the minimum needed to retire. The retirement plan is well funded with almost a million dollars in the retirement account the amount needed for retirement is 0.Therefore I am on track to retire when i want ,at this rate i shall have more money than needed for retirement.The annual percent savings even when are 0% the retirement fund is adequate enough to fund the retirement.Overall there are no shortfall and the pensions and the retirement account balance are adequate enough to fund the retirement.
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