This project implements a model to estimate a person's retirement savings based on various factors affecting their income and savings plan.
Based on the following scenario below. Considering just a basic model for the prediction of future pension payouts
- Age - 30
- Expected Retirement Age - 65
- You have completed your formal education and settled down to plan the rest of your economic life.
- You desire to obtain a (level) annuity for your 25-year retirement period
- Annual gross income $50,000
- Annual income increase at 7% per year
- Saving Percentage 15% (invested in safe government bonds yielding 6% until retirement.)
- Upon retirement, your funds in the retirement account will be used to purchase a 25-year annuity (using the same 6% interest rate) to finance a steady consumption annuity
The following outcomes are the result of it:
----------Financial Report----------
Total Income Earned: $7,445,673.0
Total Amount Saved: $2,457,517.69
Annuity Payment Per Year: $192,243.54
The model utilizes Python code with functions to calculate various aspects of the retirement savings plan:
Programming Language(s): Python
Libraries: pandas, numpy
- Clone this repository:
https://github.com/02sagoe/Pension-Prediction-Model.git - Install dependencies:
pip install -r requirements.txt - Use this notebook:
python main.ipynb