Mathematics in Liberal Studies

Plan your retirement. Decide on a retirement age and desired income (in today’s dollars). Estimate yield on investments, inflation rate, and Social Security benefits. (Note: By the time of your retirement, a woman retiring in her mid-60s will likely live an average of 20 years more, a man 18 years more. Social Security income goes up with inflation. Annuities are available whereby income grows to keep up with inflation. Various other financial products, such as a life annuity, can make sure that you don’t outlive your retirement income. We discuss life annuities in Chapter 22. Also, do not neglect consideration of taxes and tax deferral of income, as considered in Exercises 47–50.) Write up your assumptions, justifications for them, calculations, and conclusions in three to four pages. Be sure to note any additional factors that you think should be taken into account but which your analysis does not include; don’t be afraid to consider possibilities with financial impacts you can’t calculate exactly.