AFP $$ Practice Retirement Projections

Key facts : Jim and Josie will both retire in $18$ years at age $65$ and $64$ respectively. They just did an ad hoc budget and they estimate that they will spend $$85,000$ in retirement $($in today dollars$).$ They will be eligible for the following sources of retirement income:The normal CPP and OAS entitlement for them, in today dollars, is $$16,000$ and $$8000$ respectively. Jim has a RRSP with $$225,000$ today. He will give $$10,000$ per year until retirement. He earns $5\mathrm{.}5\%$ on t hERRSP.Josie has a small RRSP from her previous years before she joined the school board. Her RRSP is $$60,000.$ She does not contribute anymore. She earns $4\%$ on her RRSP$.$ Josie also joined a DB pension when she joined the school board $6$ years ago. She will be entitled to $2\%$ x average of best $5$ years x years of service $($non indexed for inflation$).$ She estimates her best $5$ years to be $$81,000$ by the time she retires.They have $$40,000$ in a TFSA. They use that as an emergency fund. They contribute $$2,000$ per year and think that som will be available for retirement.

Assume inflation is $2\mathrm{.}2\%.$