How much of Ted's salary is he required to contribute to his pension plan?

The requirement for how much an employee must contribute to a pension plan is often influenced by the policies set by their employer or the specific pension plan itself, as well as applicable regulations that govern pension contributions. In many cases, a common standard for pension contributions may be around 5% of an employee's salary, particularly in cases of defined contribution plans or certain government or corporate pension schemes.

In Ted's situation, the correct answer indicates that he is required to contribute 5% of his salary. This percentage is reflective of typical contributions expected in many pension plans, balancing the need for employees to save for retirement while also allowing for sufficient take-home pay.

This aligns well with general practices in the financial planning field, where contribution rates often fall within a range influenced by various factors, such as the plan's structure, regulatory guidelines, or employer matching contributions, which may encourage higher employee participation rates. Therefore, this specific contribution level ensures that Ted is on the right track in terms of fulfilling his obligations under the pension plan while also supporting his long-term financial planning goals.