I ran a few scenarios--your numbers are not correct.
Start at age 20, making $15,000/y, increasing 5% per year. (Salary at retirement over $100k/y)
Assume annual savings rate of 15%
8% return
Retire at 60.
I get around a million dollars saved at age 60 (i.e. today). Not enough to buy an annuity that pays out over $100,000/y. Off by a factor of 2 or so, I think.
And starting salary 40 years ago was probably under 15k, 8% consistent compounded returns are really good, the other retirement benefits besides the pension etc.
Start at age 20, making $15,000/y, increasing 5% per year. (Salary at retirement over $100k/y)
Assume annual savings rate of 15%
8% return
Retire at 60.
I get around a million dollars saved at age 60 (i.e. today). Not enough to buy an annuity that pays out over $100,000/y. Off by a factor of 2 or so, I think.
And starting salary 40 years ago was probably under 15k, 8% consistent compounded returns are really good, the other retirement benefits besides the pension etc.