Skip to contents

Solves Equation (18.5) for the contribution rate required to achieve a target replacement ratio.

Usage

contribution_rate_target(x, z, Sx, RR_target, i, adue_z, g = NULL, s = NULL)

Arguments

x

Entry age.

z

Retirement age.

Sx

Salary at age x.

RR_target

Target replacement ratio.

i

Annual effective interest rate.

adue_z

Whole life annuity-due factor at age z.

g

Optional constant annual salary growth rate.

s

Optional salary scale vector of length z - x.

Value

Required contribution rate.

Examples

contribution_rate_target(
  x = 30, z = 65, Sx = 60000, RR_target = 0.50,
  i = 0.06, adue_z = 11, g = 0.04
)
#> [1] 0.1052808