金融学 第二版 兹维.博迪 罗伯特C默顿等著Bodie2_IM_Ch05.pdfVIP

CHAPTER 5 - Household Savings and Investment Decisions End-of-Chapter Problems 1. Fre d’s company has a de fine d-be nefi t pension plan. Suppose the plan pays a benefit equal to 1% of final salary per year of service . Fre d is 40 years old and has worke d for the company for 15 years. His last year’s salary was $50,000 and is expected to remain so in real terms until retirement. The expected rate of inflation is 4%. a. If normal retirement age is 65, the interest rate is 8% , and Fred’s life expectancy is 80, what is the present value of his accrued pension benefit? b. What effect should his pension benefit have on Fred’s planned saving assuming he has a 75% target replacement rate? Solution: a. Freds last year salary of $50,000 has a real growth rate of 0%, hence it will keep up with inflation until retirement but not beat it. At retirement, he would have worked for the company for a total of forty years. 25 Hence his annual pension benefit will be equal to 1%??? 50000?() 1+ 4% ???40 = 53316.73 $53,316.73. We must first find the value of those annual payments in the year when he retires, then discount that back to today. PVPMT(53316.73, 8%, 15 )= 456363.4141 $456,363.41 Discounting this retirement age sum back to a present value: PVFV(456363.41, 8%, 25 )= 66637.2290 $ 66,637.23. b. For a 75% replacement rate, Fred expects to have an annual income of 75%? 50000 = 37500.0000 = $37,500 in real terms after retirement. Since his pension benefit is providing him with part of his financial needs after retirement, he would only need to worry about the difference between his target income and what the pension is providing him, hence decreasing his planned savings before retirement. 2. Analyze the “expert’s” responses to the following questions: Question: How early do you recommend people begin saving for retirement? Would it be too early for my 14-year-old to start saving?