inflation&purchasing power

nikhilreddy
Assignment4PensionCapitalSimulationevanth.xlsx

Pension Capital Simulation

Annual average inflation rate 2%
Monthly average income 1,000
Annual average income growth 1%
Annual rate of return (1ast level) 0% Indexation =65-7-12-5-5
Annual rate of return(2nd level) 3%
Annual rate of return (3rd level) 3%
Income tax 20%
Social tax for 1st level 14%
Social tax for 2nd level 6%
Annual rate of return ( alternative investements) 12%
How much to invest in 3rd Level 5% Financed by taxes on salary Financed by own money
Years Salary Monthly Investments into 1st Level Monthly Investments into 2nd Level Accumalated Capital in 1st Level Accumalated Capital in 2nd Level Monthly Investements into 3rd Level Accumalated Capital in 3rd Level Annual Tax refund Accumulated Capital in alt.investments
1 1000 140 60 $1,680 $730 50 $608 120 $120
2 1010 141 61 $3,377 $1,489 51 $1,241 121 $256
3 1020 143 61 $5,091 $2,279 51 $1,900 122 $409
4 1030 144 62 $6,821 $3,101 52 $2,584 124 $581
5 1041 146 62 $8,570 $3,955 52 $3,296 125 $776
6 1051 147 63 $10,335 $4,842 53 $4,035 126 $995
7 1062 149 64 $12,119 $5,764 53 $4,804 127 $1,242
8 1072 150 64 $13,920 $6,722 54 $5,602 129 $1,520
9 1083 152 65 $15,739 $7,717 54 $6,431 130 $1,832
10 1094 153 66 $17,577 $8,750 55 $7,292 131 $2,183
11 1105 155 66 $19,432 $9,823 55 $8,186 133 $2,578
12 1116 156 67 $21,307 $10,936 56 $9,114 134 $3,021
13 1127 158 68 $23,200 $12,091 56 $10,076 135 $3,519
14 1138 159 68 $25,112 $13,290 57 $11,075 137 $4,077
15 1149 161 69 $27,043 $14,533 57 $12,111 138 $4,705
16 1161 163 70 $28,993 $15,823 58 $13,186 139 $5,409
17 1173 164 70 $30,963 $17,160 59 $14,300 141 $6,198
18 1184 166 71 $32,953 $18,547 59 $15,455 142 $7,084
19 1196 167 72 $34,962 $19,984 60 $16,653 144 $8,078
20 1208 169 72 $36,992 $21,474 60 $17,895 145 $9,192
21 1220 171 73 $39,042 $23,017 61 $19,181 146 $10,442
22 1232 173 74 $41,112 $24,617 62 $20,514 148 $11,842
23 1245 174 75 $43,203 $26,274 62 $21,895 149 $13,413
24 1257 176 75 $45,315 $27,991 63 $23,326 151 $15,173
25 1270 178 76 $47,449 $29,770 63 $24,808 152 $17,147
26 1282 180 77 $49,603 $31,611 64 $26,343 154 $19,358
27 1295 181 78 $51,779 $33,518 65 $27,932 155 $21,836
28 1308 183 78 $53,977 $35,493 65 $29,577 157 $24,614
29 1321 185 79 $56,197 $37,537 66 $31,281 159 $27,726
30 1335 187 80 $58,439 $39,653 67 $33,044 160 $31,213
31 1348 189 81 $60,703 $41,843 67 $34,869 162 $35,120
32 1361 191 82 $62,990 $44,109 68 $36,758 163 $39,498
33 1375 192 82 $65,300 $46,454 69 $38,712 165 $44,403
34 1389 194 83 $67,633 $48,881 69 $40,734 167 $49,898
35 1403 196 84 $69,989 $51,392 70 $42,826 168 $56,054
36 1417 198 85 $72,369 $53,989 71 $44,991 170 $62,951
G= 19
Level Accumulated Capital Annual Pension Monthly Pension In Current Prices
1st $72,369 $3,809 $317 156
2nd $53,989 $2,842 $237 116
3rd $44,991 $2,368 $197 97
Alt. Inv. $62,951 $3,313 $276 135 How much to reserve 70%
Total $1,028 $504 Av.Salary in 36 Years 2040
Rate Of Return 8%
Pension Year Age Annual State Pension Capital from 2nd level Private Capital Capital (total) Avilable Capital Reserve for 1 year Capital in the beginning Capital in the End
1 66 $3,809 $10,798 $107,941 $118,739 17135 $101,604 109732
2 67 $3,809 $10,798 $120,530 17135 $103,395 111667
3 68 $3,809 $10,798 $122,465 17135 $105,329 113756
4 69 $3,809 $10,798 $124,554 17135 $107,419 116012
5 70 $3,809 $10,798 $126,810 17135 $109,675 118449
6 71 $3,809 $118,449 17135 $101,314 109419
7 72 $3,809 $109,419 17135 $92,284 99666
8 73 $3,809 $99,666 17135 $82,531 89134
9 74 $3,809 $89,134 17135 $71,999 77759
10 75 $3,809 $77,759 17135 $60,624 65474
11 76 $3,809 $65,474 17135 $48,339 52206
12 77 $3,809 $52,206 17135 $35,071 37876
13 78 $3,809 $37,876 17135 $20,741 22400
14 79 $3,809 $22,400 17135 $5,265 5687
15 80 $3,809 $5,687 17135 -$11,448 -12364
16 81 $3,809 -$12,364 17135 -$29,499 -31859
17 82 $3,809 -$31,859 17135 -$48,994 -52914
18 83 $3,809 -$52,914 17135 -$70,049 -75653
19 84 $3,809 -$75,653 17135 -$92,788 -100211
20 85 $3,809 -$100,211 17135 -$117,346 -126734
21 86 $3,809 -$126,734 17135 -$143,869 -155378
22 87 $3,809 -$155,378 17135 -$172,513 -186314
23 88 $3,809 -$186,314 17135 -$203,449 -219725
24 89 $3,809 -$219,725 17135 -$236,860 -255809
25 90 $3,809 -$255,809 17135 -$272,944 -294780