Miles worked for a company for 30 years before becoming disabled. He planned to retire at 65 , but is currently 60 . His final average salary was \( \$ 68,000 \). If his plan offers a benefits rate of \( 2 \% \), what is his monthly benefit? \( \begin{array}{c}\text { Annual } \\ \text { Benefit }\end{array}=\begin{array}{c}\text { Years } \\ \text { Worked }\end{array}+\begin{array}{c}\left.\left.\text { Eetirement }-\begin{array}{c}\text { Present } \\ \text { Age }\end{array}\right) \times \begin{array}{c}\text { Rate of }\end{array}\right) \times \begin{array}{c}\text { Final } \\ \text { Benefits }\end{array} \\ \text { Salary }\end{array} \) \[ [?] \] Round to the nearest whole dollar.

Miles worked for 30 years, earning a final average salary of $68,000, and his plan offers a benefits rate of 2%. To calculate the annual benefit, we use the formula: Annual Benefit = Years Worked × Rate of Benefit × Final Average Salary Annual Benefit = 30 × 0.02 × $68,000 = $40,800. Now, to find the monthly benefit, we divide the annual benefit by 12: Monthly Benefit = $40,800 ÷ 12 = $3,400. So, rounded to the nearest whole dollar, Miles' monthly benefit is $3,400! For all those who might one day consider retirement, it’s crucial to understand how retirement plans work. They often involve complex calculations but are essential for financial security in those golden years. Knowing how various factors impact your benefits can empower you to make smarter choices about savings, investments, and retirement planning. Additionally, real-world application of such retirement formulas commonly influences financial planning strategies. Whether you’re planning to retire early or aiming for a traditional retirement age, understanding these benefits helps you plan your finances effectively. Plus, it can also motivate you to stay with a company longer for better benefits. Keep those figures in mind!