7. George, a financial planner, has determined that Dennis, $2 million at age 66 to retire by using an annuity model based on a retirement income of $150,337.75 per year for 24 years to age 90. If the earnings rate was 10% and the inflation rate was 3%, what additional amount would be needed at age 66 to provide a capital preservation model solution?

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Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.