Summary of pieces to problem Initial salary of 50,000 after-tax. It will grow at 2% each year. You will work from age 30 to 65 While working, you will save a constant percentage x% of your salary. We are going to solve for x that you need to hit your retirement target. At age 65, you stop working (this is the last year you get a salary). You have a pile of money in your account. Each year you will withdraw 60% of what your salary was when you were 65. For example, suppose at age 65 your after-tax salary was $100,000. Then each year (age 66, 67, ...) while retired you will withdraw $60,000 from your savings to cover your expenses. At age 105 you want to have approximately $0 left in your savings account. Solve for the x% such that this balance is about zero. Period Age 3500 r(interest rate) 2 fraise rate) 81% salary after retire) s(% salary saved) 1.04 1.02 60% Salary 30 $ 50,000.00 31 $ 51,000.00 32 $ 52,020.00 New Savings Savings Balance $ 12,000.00 $ 12,000.00 $ 12,240.00 $ 24,720.00 $ 12,484.80 $ 38,193.60 Withdraws $ $ $ Summary of pieces to problem Initial salary of 50,000 after-tax. It will grow at 2% each year. You will work from age 30 to 65 While working, you will save a constant percentage x% of your salary. We are going to solve for x that you need to hit your retirement target. At age 65, you stop working (this is the last year you get a salary). You have a pile of money in your account. Each year you will withdraw 60% of what your salary was when you were 65. For example, suppose at age 65 your after-tax salary was $100,000. Then each year (age 66, 67, ...) while retired you will withdraw $60,000 from your savings to cover your expenses. At age 105 you want to have approximately $0 left in your savings account. Solve for the x% such that this balance is about zero. Period Age 3500 r(interest rate) 2 fraise rate) 81% salary after retire) s(% salary saved) 1.04 1.02 60% Salary 30 $ 50,000.00 31 $ 51,000.00 32 $ 52,020.00 New Savings Savings Balance $ 12,000.00 $ 12,000.00 $ 12,240.00 $ 24,720.00 $ 12,484.80 $ 38,193.60 Withdraws $ $ $