Question:
Henry Hub has 25 years to retirement and expects to spend a further 20 years in retirement (i.e., years 21-45). He lives an extravagent lifestyle and has drawn up a detailed spreadsheet which suggests that he will spent $256,880 a year in real terms in retirement.
If the real interest rate is 3%, how much does Henry need to save each year in real terms until retirement to attain his spending goal?