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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 $45,000 and expects that to increase each year with inflation (2%). She thinks she will need about 70% of that to live on in retirement.
- She has $40,000 in an RRSP
- Her investments are earning a real rate of 7%
- 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 $15,000 per year.
How much does she need to have saved at the time she retires?
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