Clients Name: Bennet Price

Age: 54

Desired retirement age: 64

Life Expectancy: 98

Current Retirement Savings: $67,835

Expected inheritance to receive at age 64: $200,000.

Amount she want to donate after she passes away: $2,000,000.00.

Age for Social Security Benefits: 67

Social Security Benefit amount: $30,000.00

Client wants to Receive benefits at age 64

Annual inflation pre-retirement: 2%

Pre-retirement Return on Investment:  6%

Retirement Interest Rate: 4 Percent

 

How much income will the client need in their first year after retirement? 

What amount of capital is necessary at the start of retirement to support their income needs throughout retirement?

For purposes of Social Security retirement benefits, the client will reach full-retirement age at 67. Their full benefit is expected to be $30,000 in today's dollars. If they decide to factor in social security and begin taking social security benefits when they retire at age 64, how much personal capital would they need to accumulate at retirement age?

If they wanted to leave $2,000,000 (actual amount of donation at death, how much additional capital would they need to have accumulated at the time they retire at age 64?

They would like to know how much they need to save each year to fund retirement.

For purposes of this calculation, assume they have accumulated retirement savings of $67,835, they want to retire at age 64, they will live until age 98, and they expect to inherit $200,000 at the age of 64 (just when they retire). Social Security benefits are the same as described above.

Answer rating: 100% (QA)

How much income will the client need in their first year after retirement To calculate the clients desired retirement income we can use the following formula Desired retirement income Current annual i... View the full answer