Question: Deterministic Selected Assumptions Sensitivity Analysis Conservative Assumption Group 2 Case Age 25 Retirement age 65 64 Retirement life expectancy 90 Current income $ 60,000 WRR

Deterministic Selected Assumptions Sensitivity Analysis Conservative Assumption
Group 2 Case
Age 25
Retirement age 65 64
Retirement life expectancy 90
Current income $ 60,000
WRR 75%
Inflation 3% 3.50%
Investment return 9% 8%
SS retirement benefit $ 14,000 $ 13,000

Solve the following questions using both annuity model & purchasing power preservation model.

1) Calculate Kevin's capital needed at retirement at age 65.

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