Answer to Question #268249 in Macroeconomics for maye

Question

When deciding how much of their income to save vor retirement

Answer 1

When saving for retirement, most experts recommend an annual retirement savings goal of 10% to 15% of your pre-tax income.

In deciding how much income to save for retirement, workers should consider the real interest rate, since they care about their purchasing power in the future, not the number of dollars they will have.