Growing annuities You estimate that by the time you retire in 35 years you would have accumulated savings of $2 million. If the interest rate is 8% and you live 15 years after retirement, what annual level of expenditure will those savings support? Unfortunately inflation will eat into the value of your retirement income. Assume a 4% inflation rate and work out a spending programme for your retirement that will allow you to increase your expenditure in line with inflation.