question archive At the age of 25, Martin gets a job with an initial salary of £30,000 paid at the end of the year
At the age of 25, Martin gets a job with an initial salary of £30,000 paid at the end of the year
Subject:FinancePrice:2.86 Bought9
At the age of 25, Martin gets a job with an initial salary of £30,000 paid at the end of the year. He forecasts that his salary will increase at a constant rate of 2 per cent per annum until he retires in 40 years’ time. Martin saves 10 per cent of his salary each year in a pension scheme and these savings are invested at a rate of return of 5 per cent. If Martin uses the accumulated savings in his pension fund to purchase an annuity, what annual pension will he receive if he expects to live for a further 20 years in retirement?
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£38,773 |
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£507,355 |
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£40,711 |
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£483,195 |
