Suzanne is 65 years old and has worked for BCE for 25 years. She is a member of a Defined Benefit Pension Plan that will pay a retirement benefit of 2% of the average of her best 3 years of earnings multiplied by her years of service. Her salary in the year before retirement was $82,000, and rose by an average of 5% per year over the last few years. Suzanne also has $200,000 in her RRSP invested in Canadian stocks. She estimates her income needs in retirement at $50,000 a year before tax.

Part A: What will be Suzannes annual pension benefit from BCE? Calculate pension benefit.

Part B: If Suzanne expects to live until the age of 85, how much should she have in retirement savings at the time of retirement taking into consideration her corporate pension income? Ignore income from OAS and CPP and assume an investment return of 5% per annum. Calculate amount required for her retirement savings.

Part C: Is Suzannes RRSP asset allocation appropriate? Please explain one reason why it is, and one reason why it isnt.