Assume you are 25 and earn ​$29 comma 00029,000 per​ year, never expect to receive a​ raise, and plan to retire at age 55. If you invest 5 percent of your salary in a​ 401(k) plan returning 1111 percent​ annually, and the company provides a​ $0.50 per​ $1.00 match on your contributions up to 3 percent of​ salary, what is the estimated future value of your​ 401(k) account? Once you​ retire, how much can you withdraw monthly if you want to deplete your account over 3030 ​years?

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A:

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Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.