Eric Works for a Company with a Defined Contribution Benefit

question 205

Essay

Eric works for a company with a defined contribution benefit pension plan.He will retire in ten years (at age 65)and expects his salary to be $100,000 in his last year of work.Social security should pay him $1,325 per month at that time.If he needs 80 percent of his income to maintain his standard of living upon retirement,how much annual income will he need from his employer's plan and from his own planning when he retires? (Show all work. )

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Definitions:

Negative Way

A term not specific to a field; generally refers to a manner or approach that is not constructive or beneficial.

Irrational Thoughts

Thoughts that are not based on reality or logical reasoning, often negative and self-defeating.

New Ways

Innovative approaches or methods to address or solve problems.

Motorcycle Accident

An unexpected event involving a motorcycle that results in damage or injury.