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Agnes is 40 years old. She wants to know how much she should be saving each year for retirement. Below are the specifics: She wants
Agnes is 40 years old. She wants to know how much she should be saving each year for retirement. Below are the specifics: She wants to retire at 60 and expects to live until shes 90 She currently makes $46,000 and expects that to increase each year with inflation. She thinks she will need about 75% of that to live on in retirement. She has $40,500 in an RRSP Her investments are earning a real rate of 5% annual return before retirement. When she retires she will move her investments into a more conservative portfolio and earn 3% per year. She expects that CPP will be about $12,500 per year in today's dollars. CPP amount is inflation adjusted
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