You have been appointed as a human resource support staff intern at ABC company. Your first project is to develop a retirement plan that the company can use to support the companys staff on their retirement. A sample employee profile and the requirements for their retirement plan case scenario have been given to you to develop the spreadsheet model.

A. Sample Profile Tim is 37 years old and would like to establish a retirement plan. Below is his current profile:

Age: 37

Salary: $ 145,000

Expected annual percentage increase in salary: 2%

Percentage of annual salary contributed to retirement: 6%

Current total retirement savings: $ 259,000

Annual rate of return on retirement savings: 4%

Expected age of retirement: 65

Expected annual expenses after retirement (currently): $90,000

Rate of return on retirement savings after retirement: 3%

Income tax rate postretirement: 15%

Assume that Tims employer contributes 6% of his salary to his retirement fund. Tim can make an additional annual contribution to his retirement fund before taxes (tax free) up to a contribution of $16,000. Assume that he contributes $6,000 per year. Also, assume an inflation rate of 2%

B. Tasks

o You are to develop a spreadsheet model that could be used to assist Tim with retirement planning

o From your analysis, produce a managerial report that summarizes your findings.

Your report must include the following:

a) Outline the factors that will have the greatest impact on Tims retirement

b) Accumulated savings at the onset of retirement as well as the age at which funds will be depleted (given assumptions on the input parameters).

c) A data table to demonstrate the sensitivity of the age at which funds will be depleted to the retirement age and additional pre-tax contributions.

d) You may add any other factors that you think might be important contributions to Tims retirement