Respond to the following questions.

Describe the process for determining retirement income needs by addressing the following:

Estimated household expenses: review the Annual Budget that you prepared in your M$9$ Assignment: Financial Strength. Select at least four expenses and indicate how each one would be different in retirement. Provide your rationale as to why each one would either increase, decrease, or be eliminated. Next, describe one new expense that is not included in the Budget that could exist during retirement.

Estimated income: describe at least three potential sources of income that you would expect to receive in retirement. Identify how the income would become available and what role your prior planning will play in obtaining this income.

Inflation factor: describe the term $$inflation$$ and indicate how it impacts retirement income. Next, visit the latest U$.$S$.$ Bureau of Labor Statistics Consumer Price Index Summary latest Economic News Release and indicate if the inflation rate increased or decreased for the month reported. This will be found in the first sentence of the release. If you were currently retired, what impact would this increase or decrease in inflation reported in the release have on your retirement funds?

Shortfall funding: assuming that there is a shortfall between your estimated retirement expenses and income, discuss two changes in your current spending that could help you to fund the difference and stay on track for your retirement plan.

Characterize potential sources of income available for retirement years by addressing the following:

Pension Plan: describe the difference between a Defined$-$Benefit and a Defined$-$Contribution plan. Indicate how each provides income for retirement and how each are funded $($i$.$e$.$ employee, employer, or both$).$ If you were looking for a job, which plan do you believe would be offered by your future employer $($if any$)?$ Explain why or why not.

Supplemental Plan: describe the purpose of this type of plan. Indicate how it provides income for retirement and how each are funded $($i$.$e$.$ employee, employer, or both$).$ If you were looking for a job, which of the three types of supplemental plans covered in this module would you prefer be offered by your future employer $($if any$)?$ Explain why or why not.

Individual Retirement Account $($IRA$)$: describe the difference between a Traditional and a Roth IRA. Indicate how each provide income for retirement and how each are funded $($i$.$e$.$ employee, employer, or both$).$ If you were planning on opening an IRA, indicate which type that you would select and provide your rationale.

Annuity: describe the purpose of this type of plan, including the difference between the accumulation period and the distribution period. Indicate how it provides income for retirement and how it is funded. Assume that you are looking to purchase an annuity for your retirement, review the types of annuities discussed in the chapter, make a selection, and support your decision.

Discuss the role of Social Security benefits in a retirement plan by addressing the following:

Purpose: describe the difference between FICA and Medicare. Next, indicate how each of these benefits are funded $($i$.$e$.$ employee, employer, or both$).$

Eligibility: summarize the eligibility requirements for collecting Social Security.

Benefit Age: summarize the three ages that people usually collect Social Security. If you were close to the youngest age, would you start collecting as soon as possible, or would you delay? If you would delay, indicate the age you would select and provide your rationale.

Retirement Impact: describe the role that Social Security would play in your retirement plan. Based on the information provided in this module, what percentage of a retiree$$s income does Social Security account for? Finally, do you believe that you will be able to depend on Social Security being available when you retire? Explain why or why not.