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$) (calculated)
Social Security monthly (https://www.ssa.gov/OACT/quickcalc/) 2020$
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
