(1) Discuss advantages to installing a retirement plan for the employer. Be sure to include a discussion of the â€œfour Râ€™sâ€: help recruit, reward, retain, and retire employees.
(2) Discuss the process of retirement needs analysis including the various assumptions and steps in the process.
Just for the fun of it, attempt the following question:
Mr. and Mrs. Jones now have $130,000 in their savings account. They hope to retire in 20 years and want to accumulate sufficient assets to support a 25-year post-retirement period. Assume they make no more additions to the retirement account. They expect to earn on average 10% on their savings account until they retire and then 7% on the account during retirement. What amount of income should they expect to receive each month during retirement?
What makes this type of information important to individuals of all ages?