For example, to calculate the rate of growth of an economy with a savings rate of 30% and a capital output ratio of 5, we then apply the following formula.
Chief argument against the idea was that the use of such retirement savings may leave the account holder with an insufficient amount at the end of his working life.
The payback period i.e., the point after which the full amount of the investment will have been recouped and at which savings actually commence was to have started in 2011.