Question
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
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.
What will be Suzanne's annual pension benefit from BCE?
Please help , I have no idea which formula to use .
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