A middle-aged school teacher is dreaming about retirement. She believes she can comfortably leave the workforce in 12 years if her savings has grown to $600,000. Currently, she has $425,000 saved in her retirement fund. What rate of return must her current savings earn per year to reach her goal? Assume interst rates are compounded annually.      about 12% per year     a little more than 7% per year     a little less than 3% per year     about 41% per year

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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.