Required: Bob makes $90,000 a year in income at age 50, and his salary is growing at 5 percent per year. He currently has retirement savings of $400,000. He wants to know if he will have enough income to retire at age 70. Bob could ask the below questions regarding his retirement savings and for each of these questions, determine which type of analytics might address it. Question How much retirement savings did we have at age 30? Age 40? How do we adjust our savings pattern to meet the expected retirement savings target? What is the forecasted level of income at age 70? Given the expectations given of retirement income at ages 30, 40, 50, and 70, how much does the savings to date differ from that expected? What is the forecasted retirement savings? What was the level of income at age 30, 40, and 50? When will be able to retire? Age 65? Age 70? Analytics
Required: Bob makes $90,000 a year in income at age 50, and his salary is growing at 5 percent per year. He currently has retirement savings of $400,000. He wants to know if he will have enough income to retire at age 70. Bob could ask the below questions regarding his retirement savings and for each of these questions, determine which type of analytics might address it. Question How much retirement savings did we have at age 30? Age 40? How do we adjust our savings pattern to meet the expected retirement savings target? What is the forecasted level of income at age 70? Given the expectations given of retirement income at ages 30, 40, 50, and 70, how much does the savings to date differ from that expected? What is the forecasted retirement savings? What was the level of income at age 30, 40, and 50? When will be able to retire? Age 65? Age 70? Analytics
Chapter17: Retirement And Estate Planning
Section: Chapter Questions
Problem 4FPC
Related questions
Question
Transcribed Image Text:The recommended level of retirement savings an individual should have saved at each age is as follows:
a. At age 30: 1X income at age 30
b. At age 40: 3X income at age 40
c. At age 50: 5X income at age 50
d. At age 70: 7X income at age 70
Required:
Bob makes $90,000 a year in income at age 50, and his salary is growing at 5 percent per year. He currently has retirement savings of
$400,000. He wants to know if he will have enough income to retire at age 70. Bob could ask the below questions regarding his
retirement savings and for each of these questions, determine which type of analytics might address it.
Question
How much retirement savings did we have at age 30? Age 40?
How do we adjust our savings pattern to meet the expected retirement savings target?
What is the forecasted level of income at age 70?
Given the expectations given of retirement income at ages 30, 40, 50, and 70, how much does the savings to date differ
from that expected?
What is the forecasted retirement savings?
What was the level of income at age 30, 40, and 50?
When will be able to retire? Age 65? Age 70?
Analytics
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