A National Organization for Retired Persons Claims That a Retiree

Short Answer

A national organization for retired persons claims that a retiree should have 8 years worth of income saved plus any additional amount needed to relocate (if desired) after retirement. The annual inflation rate is approximately 1.3%. A person who currently earns $34,000 per year wishes to relocate upon retirement. The move would cost $18,200 in today's money. How much should this person plan to have in savings at retirement if they plan to retire in 11 years. (Round the answer to the nearest penny.)