Pension Planning (Leaving Cert Mathematics): Flashcards
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Practise the cards
11 cards from this deck
Pension fund definition
Pension fund definition
Savings that grow via contributions, investments & interest
Goal of pension planning
Goal of pension planning
Ensure enough savings for steady income after retirement
Present value in pension planning
Present value in pension planning
Amount needed at retirement for future withdrawals & interest
Annuity calculations definition
Annuity calculations definition
Fixed withdrawals at intervals; balance earns interest
Why amount at retirement < total withdrawals
Why amount at retirement < total withdrawals
Remaining funds continue to earn interest
When first pension withdrawal occurs
When first pension withdrawal occurs
At the beginning of retirement (day of retirement)
Why later payments have lower present value
Why later payments have lower present value
They collect interest in savings before withdrawal
Jill's annual payment amount
Jill's annual payment amount
€28,000
Years in Jill's retirement plan
Years in Jill's retirement plan
25 years
Interest rate in Jill's example
Interest rate in Jill's example
Total pension fund Jill needs
Total pension fund Jill needs
€482,393.60