Individual age 45 works to age 65 and makes 20 annual payments of $10,000 to a defined contribution plan.
Assumes annual investment return of 8% compounded.
Value at 65: $494,229
Example…
Normal Retirement Savings
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Let's consider an simple example: First, a normal retirement savings scenario.

Say that an individual age 45 works until age 65 and makes 20 annual payments of $10,000 to a defined contribution plan.

Assuming an annual investment return of 8%, the value of his or her retirement fund at age 65 will be $494,229.