Mary and Susan are a married same sex couple. They have been married for 25 years and own their own home. Their home is valued at $850,000 and they have a $200,000 mortgage. Mary will be 50 this year and Susan will be 45 this year. Mary works for Bell Canada and earns $125,000 per year. She is a member of a DBPP that will provide her with a pension of $60,000 per year at age 65. Mary contributes 6% of her salary to the DBPP annually. This contribution is matched by Bell Canada. The pension entitlement represents 2% of her salary over the best 5 years of employment.

Susan works as an office administrator for ABC Company and does not have any form of pension plan. Susan earns $45,000 per year. Their number one goal is retirement planning. Mary loves her job and plans on working until she is 65. Susan wants to retire when Mary does so that they can enjoy retirement and travel extensively.

There assets and liabilities are as follows.

Mary RRSP$25000

Susan RRSP$13,000

Susan Spousal RRSP$275,000

Mary Income$125,000

Susan Income$45,000

Home Value$800,000

Mortgage$200,000

Mary TFSA$55,000

Susan TFSA$10,000

Assume you are Mary and Susan's financial planner and that Mary and Susan have hired you to make a retirement plan for them.