I believe it is either

They need to increase their annual savings by about 10 percent and they should be fine OR

They should continue to save what they are saving

Fred and Louise are 38 years old and plan on retiring at age 67 and expect to live until age 95. Fred currently earns $150,000 and they expect to need $100,000 in retirement. Louise is a stay at home mom. They also expect that Social Security will provide $30,000 of benefits in today's dollars at age 67. He has been saving $17,000 annually in his 401(k) plan. Their daughter, Ann, who was just born, is expected to go to college in 18 years. They want to save for Ann's college education, which they expect will cost $20,000 in today's dollars per year and they are willing to fund 5 years of college. They were told that college costs are increasing at 7% per year, while general inflation is 3%. They currently have $400,000 saved in total and they are averaging a 7% rate of return and expect to continue to earn the same return over time. Based on this information, what should they do? They need to increase their annual savings by about $5,000 now if they want to fund college in addition to retirement. They need to increase their annual savings by about 10 percent and they should be fine. They have saved enough to fund retirement and Ann's education and can stop saving if they wish. They should continue to save what they are saving. Fred and Louise are 38 years old and plan on retiring at age 67 and expect to live until age 95. Fred currently earns $150,000 and they expect to need $100,000 in retirement. Louise is a stay at home mom. They also expect that Social Security will provide $30,000 of benefits in today's dollars at age 67. He has been saving $17,000 annually in his 401(k) plan. Their daughter, Ann, who was just born, is expected to go to college in 18 years. They want to save for Ann's college education, which they expect will cost $20,000 in today's dollars per year and they are willing to fund 5 years of college. They were told that college costs are increasing at 7% per year, while general inflation is 3%. They currently have $400,000 saved in total and they are averaging a 7% rate of return and expect to continue to earn the same return over time. Based on this information, what should they do? They need to increase their annual savings by about $5,000 now if they want to fund college in addition to retirement. They need to increase their annual savings by about 10 percent and they should be fine. They have saved enough to fund retirement and Ann's education and can stop saving if they wish. They should continue to save what they are saving