You will be starting work pin the next 5 years or so and probably retire sometime around205. During your retirement you will have to keep paying bills well after your salary has stopped. You will have to prepare for retirement long before you get there. It is often said you cannot start planning for your retirement too early and it is certainly more and more the case that the Federal Government is encouraging working to be as self-funded as possible in retirement. Between 40% and 60% of a full time wage is normally considered retirement income.

Job: Teacher
Income per Year: $75,000
Income Percentage per year: 55%
Working years: 45
Superannuation Rate: 9.60%
Super Payments per year: 52
Retirement years: 19
Annuity Rate: 7.6%
Annuity Payments per year: 52
Inflation Rate: 3.10%
Post Retirement Expenses: $215,000

QA) NO INFLATION
You are required to show appropriate calculations and explanations for an annuity scheme that will supply a realistic income for you to live on after you retire and a realistic superannuation scheme that will generate a lump sum that will be large enough to fund this annuity and other post retirement expenses.

QB) INFLATION
You are required to show appropriate calculations and explanations for an annuity scheme that will supply a realistic income for you to live on after you retire and a realistic superannuation scheme that will generate a lump sum that will be large enough to fund this annuity and other post retirement expenses.

Apply the effect over the next 50 plus years. Inflations has a significant effect on the cost of living and all future income amounts. You will only be expected to apply the effect of inflation as much as the formulas in this assignment allow.