Final answer:
To determine your required inflation-adjusted annual income at age 65, consider factors such as your pre-retirement income and the percentage of income you will need during retirement. Most financial advisers suggest you will need approximately 70% of your pre-retirement income. Assuming a constant amount from age 65 to age 80, you would receive this annual income throughout that period.
Step-by-step explanation:
In order to determine your required inflation-adjusted annual (pretax) income at age 65, you need to consider factors such as your pre-retirement income and the percentage of income you will need during retirement. Most financial advisers suggest that you will need approximately 70% of your pre-retirement income to maintain a comfortable lifestyle in retirement.
For example, if your pre-retirement income is $100,000 per year, you would need $70,000 (70% of $100,000) as your required inflation-adjusted annual income at age 65.
Assuming that this annual amount remains constant from age 65 to age 80, you would continue to receive $70,000 per year throughout that time period.