Prompt

Most $22-$year old college graduates are not thinking about retirement. Using a National Average Wage Index of $$50,000$ per year and assuming a $40-$year career, with $15\%$ of income placed in an annuity at the end of each year earning a rate of $6\%$ compounded annually, how much money will be in the annuity at the end of the $40$ years? What is the impact of waiting $10$ years before starting to save before retirement and only putting deposits into the annuity for $30$ years before retiring? Justify your responses with calculations.

Do you think saving $15\%$ of your annual income for retirement is too much or too little of a percentage? Why do you think so$?$ Have you personally started saving for retirement? If so$,$ what is your savings plan? If you have not started saving for retirement, when do you plan to start saving?