I believe the answer is either

They should increase their annual savings by about 10 percent and they should be fine OR

They have saved enough to fund retirement and Jazzs education and can stop saving if they wish

Jerry and Jenny are 25 years old and plan on retiring at age 67 and expect to live until age 100. Jenny currently earns $150,000 and they expect to need $150,000 per year in today's dollars in retirement Jerry is a stay at home dad. They also expect that Social Security will provide $40,000 of benefits in today's dollars at age 67. Jenny has been saving $5,000 annually in her 401(k) plan. Their son, Jazz, was just born and is expected to go to college in 18 years. They want to save for Jazz's college education, which they expect will cost $20,000 in today's dollars per year and they are willing to fund 5 years of college. They were told that college costs are increasing at 7% per year, while general inflation is 3%. They currently have $100,000 saved in total and they are averaging a 10% rate of return and expect to continue to earn the same return over time. Based on this information, what should they do? They should increase their annual savings by about 10 percent and they should be fine. They have saved enough to fund retirement and Jazz's education and can stop saving if they wish. They need to increase their annual savings by about $5,000 now if they want to fund college in addition to retirement. They are doing just fine and should continue doing what they are doing