Replacement ratio for a defined contribution plan

Computes annual retirement income divided by salary in the final pre-retirement year.

Usage

replacement_ratio_dc(x, z, Sx, c, i, adue_z, g = NULL, s = NULL)

Arguments

x

Scalar entry age.

z

Scalar retirement age.

Sx

Positive scalar salary at age x.

c

Scalar contribution rate in [0, 1].

i

Scalar annual effective investment return greater than -1.

adue_z

Positive scalar whole-life annuity-due factor at retirement.

g

Optional scalar annual salary growth rate greater than -1.

s

Optional positive salary-scale vector of length z - x.

Value

A numeric scalar.

Examples

replacement_ratio_dc(
  x = 30,
  z = 65,
  Sx = 50000,
  c = 0.10,
  i = 0.05,
  adue_z = 12,
  g = 0.04
)
#> [1] 0.3620377