Utilizing the top-down approach, an individual who earns $75,000 per year as an employee for golf enterprises, llc and saves $13,000 of his earnings per year towards retirement will have a wage replacement ratio equal to 82.67%.
The given wage replacement ratio is not correct. Earnings = $75,000 per year that is 100% Savings = $13,000 that will be 17.33% Taxes = $5737 which is 7.65% So the wage replacement ratio = 100 - 17.33 - 7.65 = 75.02 and the amount will be $56,265
