Replacement ratio for a defined contribution plan

Computes the replacement ratio defined in Equation (18.4).

Usage

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

Arguments

x

Entry age.

z

Retirement age.

Sx

Salary at age x.

c

Contribution rate.

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

Replacement ratio.

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