Arial X fx A 3 Retirement income today $60,000 4 Years to retirement 10 5 Years of retirement 25 6 Inflation rate 6.00% 7 Savings $90,000 8 Rate of return 9.00% 0 Calculate value of savings in 10 years: Savings at t = 10 1 $213,062.73 _2 Calculate value of fixed retirement income in 10 3 years: 4 Retirement income at t = 10 $213,062.73 5 Calculate value of 25 beginning-of-year retirement 6 payments at t = 10: 7 Retirement payments at t = 10 $2,281,179.94 8 19 Calculate net amount needed at t = 10: 20 Value of retirement payments $2,281,179.94 21 Value of savings 2 Net amount needed 23 24 Calculate annual savings needed for next 10 years: 25 Annual savings needed for retirement $150,147.47 26 27 28 29 30 > 9 B 6:23