An annual required savings amount confirms our computational accuracy but does not necessarily imply that our savings plan will use that amount each year.

Question

Quizplus · Accepted Answer

An annual required savings amount is simply a calculation of how much money needs to be saved each year to reach a particular savings goal. It does not mean that this amount must be followed exactly or that the same amount will be saved each year. Factors such as changes in income, expenses, and investment performance may impact the actual amount saved each year.

An Annual Required Savings Amount Confirms Our Computational Accuracy but Does