Discuss the difference between the projected annual benefit, and the real buying power of your projected benefit based on the impact and projection of inflation.

PART ONE
First, click on the Bankrate’s website for calculating Social Security benefits (projected future earnings) through the website: https://www.bankrate.com/calculators/retirement/social-security-benefits-calculator.aspx
Type in your current age
Estimate your retirement age to be 65
Estimate your annual income (if none exist, type in 50,000)
Estimate salary increases of 2.5% per year
Estimate the rate of inflation to be 3% per year
For ease, do not click on married status
Click Calculate
What is your projected Social Security Benefits?
[Note, the benefit is shown as a CURRENT VALUE … however, the future buying power of your benefits will decrease over time. For example, when I was in high school, a gallon of gasoline cost $0.269, and a pack of cigarettes was $0.35. Each of these items cost more than 10 to 20 times those prices today, as compared to 40 years ago.]

SEE ATTACHED PHOTO WITH MY CALCULATIONS ON BOTH PT 1 AND 2

PART TWO
Now, click onto Adirondack Bank’s Future Value of a Dollar calculator website: https://www.adirondackbank.com/mobile/calculators/csFutureDollar.asp
In the current value of item line, type in the projected Social Security Benefits learned above
In the number of years, subtract your current age from 65, and enter the difference
Once again, put 3% in as the estimated annual inflation rate
Click calculate – this is the buying power of your future benefits in today’s value of money. In other words, this is the equivalent of your Social Security benefits if they were to start today.
PART THREE
Write a 3-5 page academic paper about what you learn in this activity. Discuss the difference between the projected annual benefit, and the real buying power of your projected benefit based on the impact and projection of inflation. Realizing the difference between current and future value of benefits, discuss whether you could survive on your Social Security income alone. If not, suggest ways you plan on augmenting your future retirement income. Discuss the actions you can take in order to meet your future lifestyle objectives.

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