Prakesh and Lindsey met at university, and moved in together a few years after graduation when they were both 30. Thankfully, they know a bit about personal finance, and theyve decided to start saving for retirement immediately. Both are currently 30 years old and they plan to retire in 40 years at 70. They hope to have a combined income of $65,000 per year (after taxes) in retirement. And they want to save enough that they can draw that amount for 25 years.

They estimate they can earn an average return of 9% on their investments while saving for retirement. When they do retire, they plan to shift into less risky assets which they expect should yield around 4% per year. When they retire, their average (overall) tax rate will be 22%.

How much must Matt and Lindsay in total put into RRSPs each year to meet their goals?