This hypothetical example assumes the following: a
starting annual gross salary of $ 60,000 with a salary increase of 4 % (2.5 % inflation + 1.5 % real salary growth rate) each year; pre-tax contributions of 15 % of salary
annually (that 15 % includes any contribution you may get from your employer)
at the
end of the year for 42 and 32 years, respectively; and an annual rate of return of 5.5 %.