1. Lynn has learned that she will need to save $1 million dollars to support her current lifestyle if she

retires in 15 years. Lynn jiad not thought about planning for retirement until now. If she begins

saving now, she will need to save approximately $67,000 per year. Based on her annual income of

$75,000, this goal is not attainable. How would Lynn's retirement be affected if she had understood

the importance of planning for retirement earlier?

Question

Mathematics

Melody Haynes

21 August, 18:26

1. Lynn has learned that she will need to save $1 million dollars to support her current lifestyle if she

retires in 15 years. Lynn jiad not thought about planning for retirement until now. If she begins

saving now, she will need to save approximately $67,000 per year. Based on her annual income of

$75,000, this goal is not attainable. How would Lynn's retirement be affected if she had understood

the importance of planning for retirement earlier?

+3

Answers (1)

Know the Answer?

Tamara Allen · Answer 1

Given 40 years of time to plan in advance for retirement, Lynn would only need to save $25000 per year to end up with $1 million, which is attainable.

Step-by-step explanation:

Lets say that she starts planning for retire with 40 years in advance instead of just 15, if that is the case, then she would need to save $1.000.000/40 = $25.000 per year, which is a pretty big ammount but it is much more attainable than $67000, since it is only a third of her annual income.