A church wants to provide a retirement plan for the senior pastor who is aged 55 now. The plan will provide the pastor with an annuity immediate of GH¢7,000 every year for 15years upon his retirement at the age of 65 years. The Church is funding this plan with an annuity-due of 10years. If the rate of effective interest is 5℅ what is the amount of instalment the church should pay?

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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.