Age at beginning of Work Life

Beginning expected salary* (2021$)

Endging expected salary* (2021$)

Beginning expected take-home pay* (2021$)

Endging expected take-home pay* (2021$)

Growth rate of salary per year

Age at beginning of Work Life

Age at beginning of Retirement

Years to retirement (calculated)

Age at death

Inflation rate

Appreciation rate

Ending expected salary (retirement year$) (calculated)

Social Security monthly ( 2020$

Social Security monthly 2065$

Assume 2021 amounts adjusted to retirement year and adjusted for inflation

†Calculated using above data

Prepare your plan using these assumptions:

The individual

has no assets when they begin work,

seeks to maintain a constant real budget during each year of retirement (i.e., the budget will increase at the rate of inflation),

desires a have no assets at death.

Is at the beginning of their career

The salary increases at the same rate each year.

Assume deductions from gross pay = 20%, including payroll tax is 7.65%

Sample Solution