1. Number of years until retirement (from Step 1 line 1)
2. Savings needed at retirement (from Step 2 line 4)
3. Value of current savings at retirement (from Step 3 line 4) 4. Additional retirement savings needed (subtract line 3 from line 2) 5. Current annual salary (from Step 1 line 2)
6. Projected saving rate factor
7. Maximum possible savings based on salary until retirement (multiply line 5 X line 6)
8. Target saving rate (divide line 4 by line 7)
PROJECTED SAVING RATE FACTORS
(by number of years until retirement)
20
25
30
35
40
45
55.2006
89.1753
138.6986 210.3277 313.3072 460.6579
This step pulls together results from the previous steps and gives you a target saving rate.