Lennox is 33 years old and graduated from college about 8 years ago. He struggled following college to find work that was fulfilling to him and also paid a sufficient salary. He has now been in his current job for 2 years and loves it. He earns $55,000 per year, with several opportunities to increase his income Lennox definitely wants to retire by age 67. His employer provides a 100% match on employee 401(k) contributions up to 5% of the employee's pay. Using llustration 10.1.3, what percentage of Lennox's income should he be contributing to the 401(k) plan each year? Illustration 10.1.3 provides examples of required retirement saving rate estimates based on the numbers from Illustration 10.1.2. A retirement savings rate is just the percentage of your income that you need to put aside for retirement. Amount Average Required Retirement Savings Rate to Reach Retirement Goal Needed at Career Start Saving at Age 25 Start Saving at Age 35 Start Saving at Age 45 Retirement Income $178,250 $23,000 7.2% 12.7% 24.796 $537,500 $50,000 10.04 17.6% 34.396 $936,000 $78,000 11.2% 19.79 38.3% $1,620,000 $120,000 12.6% 22.196 43.0% *Assumes that the individual has not yet saved any money for retirement plans to retire at age 65, and will realize a real rate of return on investments of 4.5% Lennox should contribute betwee Save for Later 12,6% to 14,7% 76% to 9.7% 17.6% to 10.7% Attempts: 0 of 1 used Submit