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how mucII WII Juul purchasing power? 5. You are saving for retirement and you come across the following table. It shows the percentage of your
how mucII WII Juul purchasing power? 5. You are saving for retirement and you come across the following table. It shows the percentage of your current salary that you should save for your retirement in order to retire with an annuity equal to 70% of your salary if you have not yet saved anything, It assumes that your annual salary will remain constant in real terms until retirement and that you will live for 25 years after retiring. For instance, if you have 35 years left before you retire and earn 3.5% per year on your investments, then you should save 17.3% of your current salary. TABLE A Saving Rate Needed to Achieve 70% Replacement Rate Real Interest Rate Years to Retirement 15 25 35 3.5% per annum 17.30% 4.5% per annum ? ? ? ? Fill in the missing numbers in Table A
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