COULD THIS BE YOU?

Here is our average couple who plan to retire in 15 years. Their current estimated expenses for retirement are shown. They adjusted the expenses for inflation.

They estimate that they will receive about $75,000 in pensions and Social Security benefits. They estimate they will need another $42,800 to cover their expenses and taxes. Using the annuity table and formula:

Thus they should estimate they need to save $400,000 more before retirement.

This concludes this introductory tutorial on determining your retirement needs. How much do you need to save?