Your friend has a defined benefit plan and expects to retire at age 58 after 35 years of work, and the expected pension will be $40,000 a year. Your job has a 401k. Assume you also want to retire in 35 years, and want to be able to draw down $40,000 per year for the folllowing 30 years ( yes, there is a risk that you live past the age of 88). How much will you need to have amassed in order to generate the $40,000 income stream? How much will you have to save each year, for the next 35 years? Assume an investment rate of 5%?

Your friend has a defined benefit plan and expects to retire at age 65 after 33 years of work, and the expected pension will be $50,000 a year. Your job has a 401k. Assume you also want to retire in 42 years, and want to be able to draw down $40,000 per year for the folllowing 35 years ( yes, there is a risk that you live past the age of 88). How much will you need to have amassed in order to generate the $40,000 income stream? How much will you have to save each year, for the next 25 years? Assume an investment rate of 3%?