Contribute to plan every year to fund your retirement income

Assignment Help Financial Management

Reference no: EM13977927

You have just turned 30. You must decide how much money to put into your retirement plan. You are required to specify a fixed percentage of your salary that you want to contribute. Assume that your starting salary is $70000 per year and will grow 1.8% per year until you retire. Every dollar in the plan earns 7.3%. You cannot make withdraws until you retire on your sixty fifth birthday. After that point, you can make withdrawals as you see fit. You deuced that you will plan to live to 100 and work until 65. You estimate that to live comfortably in retirement, you will need $100000 per year starting at the end of the first year of retirement and ending on your 100th birthday. What percentage of your income do you need to contribute to the plan every year to fund your retirement income?

Reference no: EM13977927

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