$0 Brackets to $100,0000 to $100,000 infinity AVERAGE tax rate 30% 40%

Imagine you just finished 30 years-old, earning $120,000 pre-tax per year paid at the
end of each year. Assume you have no financial asset or explicit liabilities. Your salary
grows 1% per year until you retire at the end of age 65 (35 full years of working). After
retirement, you are entitled to receive a pension paying 50% of your last salary for the
rest of your life (your pension would remain constant). Assume a valuation rate of 5% and
a planning horizon to age 95 (30 full years of retirement). Your current subsistent
consumption is $20,000 (paid at the end of the year). You expect your subsistent
consumption to grow at rate of 2% until the end of age 95. Your goal is to maintain a
constant discretionary consumption (standard of living) for the rest of your life. You
should pay taxes according to the table below.

Please answer:
Part A: If you put your savings in a TFSA account, what is the highest real & constant
standard of living that you can achieve?
Part B: What fraction of your fifth salary (salary at the end of age 35) should you save to
achieve your financial goal? Do not forget subsistent consumption.
Part C: How much financial capital should you have at age 65, so that you can achieve
your financial goal. This is also known as your target “retirement nest egg”.