1 Required annuity payments Retirement income today Years to retirement Years of retirement Inflation rate Savings Rate of return $35,000 10 25 5.00% $165,000 9.00% 10 Calculate value of savings in 10 years: 11 Savings at t = 10 Formulas #N/A 12 13 Calculate value of fixed retirement income in 10 years: 14 Retirement income at t = 10 #NA 16 Calculate value of 25 beginning-of-year retirement payments at t=10: Retirement payments at t = 10 #N/A 19 Calculate net amount needed at t = 10: 20 Value of retirement payments 21 Value of savings 22 Net amount needed #N/A #N/A #NA 24 Calculate annual savings needed for next 10 years: 25 Annual savings needed for retirement #N/A Sheet16