an employees current annual gross wage is $65,400. for retirement, the employee wants to have enough saved…

an employees current annual gross wage is $65,400. for retirement, the employee wants to have enough saved to live off 80% of the current annual gross wage and withdraw 4% the first year. calculate the total the employee will need in retirement savings to achieve their retirement goal.\n$1,308,000\n$1,380,000\n$130,800\n$138,000

an employees current annual gross wage is $65,400. for retirement, the employee wants to have enough saved to live off 80% of the current annual gross wage and withdraw 4% the first year. calculate the total the employee will need in retirement savings to achieve their retirement goal.\n$1,308,000\n$1,380,000\n$130,800\n$138,000

Answer

Explanation:

Step1: Calculate desired annual withdrawal

$$65,400 \times 0.80 = $52,320$

Step2: Calculate total required savings

$\frac{$52,320}{0.04} = $1,308,000$

Answer:

$1,308,000