They expect to be mortgage free by the time they retire so the money they spend on their mortgage will go toward their travel and leisure activities. Therefore, they estimate their expenses in retirement will be around $67,700 in todays dollars. They want to retire at age 60. Penny will be able to retire with a full pension (estimated to start at $63,900 per year in future dollars or $30,100 in todays dollars and increasing at 60% of inflation). While they are going to retire at age 60 they dont plan on starting CPP benefits until they are 65 so they dont have to take a reduced amount. They have a combined annual after-tax income of $104,200

Do retirement calculations.