Vivek will graduate this year (22 years old) and has landed a lucrative job. He wants to retire in the next 20 years. His income starting next year will be 80,000. He believes that in retirement he will be spending 100,000 a year (he knows expenses will go up once he is married and has kids). 

How much does he need to save to make this dream a possibility? Assume Rate of return to be 8%, inflation to be 2% and his life expectancy to be 80 years.

Answer rating: 100% (QA)

To determine how much Vivek needs to save to retire in 20 years with an annual retirement ... View the full answer