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Maggie is 35 years old and plans to retire at age 67 . She wants an income of $67,500 per year, after tax, in today's
Maggie is 35 years old and plans to retire at age 67 . She wants an income of $67,500 per year, after tax, in today's dollars, to last until the age of 90 . She anticipates her employer pension income will be $52,000 per year, before taxes, and that she will earn $12,000 from CPP and OAS (combined). Pension benefits are to be received at the beginning of each year, the average tax rate (ATR) after retirement is anticipated to be 22%, the weighted average nominal return (before inflation) during retirement is approximated at 7%, before retirement at 12%, and the average inflation is expected to be 3%. How much should she be saving at the end of each year leading up to retirement, to reach her retirement income goal? a. $6,169 b. $6,517 c. $2,942 d. $2,296
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