Question

Model two retirement scenarios (one where you start saving early, and one where you start saving in your 50's) and duplicate them on Excel to check the results. Post an attachment of your Excel worksheets.

Did the results surprise you? Why or why not?

Answer 1

The two scenarios where the saving for the retirement is done : In early age and in later 50s :

Scenario	Starts saving early	Starts saving in 50s
Earning	Very low	Higher upper
Return on saving	Constant and Same @ 5%
Saving annual amount	$500	$3,000
Starting age	31	51
Retirement age	60	60
Number of installments	30	10
Return multiplier	A/f(5% , 30)	A/f(5% ,10)
Multiplier figure	66.439	12.578
Maturity amount on retirement	$33,219.50	$37,734.00
Result		More saving
Reason	initial low level savings	Later high level savings

As seen the result has surprised us because when we starts saving in the later years ie. in 50s, we have higher amount to save, so we put good amount to retirement fund which will provide us same or higher savings upto retirement.