Christina will be retiring next month from her job after 35 years as a school bus driver. Over the last 35 years, Christina’s annual salary averaged $22,040. She expects to receive some money each month from Social Security and plans to take the rest of the money she needs to pay the monthly bills from savings. Each month her bills total to about $1,375. Assuming her annual Social Security benefit will be 42% of her salary average, how much will she need to take from savings each month to help pay the bills?
Given: Annual salary average: $22,040 Annual Social security benefit: 42% of salary average Monthly bill: $1,375 $22,040 x 42% = $9,256.80 per annum $9,256.80 / 12 mos = $771.40 per month $1,375 – 771.40 = $603.60 Since, Christina only receives $771.40 per month from her Social Security benefit, she has to take $603.60 from her savings each month to help pay her monthly bill of $1,375.