Anna & Nick Biscuit $-$ June, $2024$

Anna and Nick Biscuit are both $40$ years of age. Anna works for a university, which

has a defined contribution pension plan. Nick works for a private corporation that

has a defined benefit pension plan. They hope to both retire at age $60$ and to

maintain their current standard of living. The Biscuit's are also hoping to be able to

travel a couple of times a year and they expect that it will cost them $$12,000$

annually, in addition to their current vacation spending of $$6,500$ per year. They

also anticipate extra healthcare costs of $$5,000$ annually. Their current expenses are

as follows:

Their marginal tax rate is $30\%$ and their average tax rate is $24\%.$ They expect these

tax rates to continue into retirement.

Nick's Pension Info:

Current pensionable earnings

Annual increase in PE expected

Years of service expected at retirement

Age at which pension begins

Indexation of annual pension

$\%$ of pensionable earnings$/$year of service

Number of years averaged for final PE

Average final pensionable earnings

Anna's Pension Info:

Current pensionable earnings

Annual increase in PE expected

Age of retirement

Current combined contribution rate

Current balance

Investment return on these savings

RRSP Assets:

Nick's current balance

Anna's current balance

Rate of return

Nick's unused RRSP contribution room

Anna's unused RRSP contribution room

TFSA Assets $($total for both$)$

Government Benefits:

They should both qualify the max CPP $($today$\text{'}$s $ $)$

$$1,365/$month

$$718/$month

Inflation:

Assumed to be $3\%$

Life expectancy age $90.$

They have no other savings at this time. Will they have enough to retire?Anna & Nick Biscuit $-$ June, $2024$

Anna and Nick Biscuit are both $40$ years of age. Anna works for a university, which

has a defined contribution pension plan. Nick works for a private corporation that

has a defined benefit pension plan. They hope to both retire at age $60$ and to

maintain their current standard of living. The Biscuit's are also hoping to be able to

travel a couple of times a year and they expect that it will cost them $$12,000$

annually, in addition to their current vacation spending of $$6,500$ per year. They

also anticipate extra healthcare costs of $$5,000$ annually. Their current expenses are

as follows:

Their marginal tax rate is $30\%$ and their average tax rate is $24\%.$ They expect these

tax rates to continue into retirement.

Nick's Pension Info:

Current pensionable earnings

Annual increase in PE expected

Years of service expected at retirement

Age at which pension begins

Indexation of annual pension

$\%$ of pensionable earnings$/$year of service

Number of years averaged for final PE

Average final pensionable earnings

Anna's Pension Info:

Current pensionable earnings

Annual increase in PE expected

Age of retirement

Current combined contribution rate

Current balance

Investment return on these savings

RRSP Assets:

Nick's current balance

Anna's current balance

Rate of return

Nick's unused RRSP contribution room

Anna's unused RRSP contribution room

TFSA Assets $($total for both$)$

Government Benefits:

They should both qualify the max CPP $($today$\text{'}$s $ $)$

$$1,365/$month

$$718/$month

Inflation:

Assumed to be $3\%$

Life expectancy age $90.$

They have no other savings at this time. Will they have enough to retire?Anna & Nick Biscuit $-$ June, $2024$

Anna and Nick Biscuit are both $40$ years of age. Anna works for a university, which

has a defined contribution pension plan. Nick works for a private corporation that

has a defined benefit pension plan. They hope to both retire at age $60$ and to

maintain their current standard of living. The Biscuit's are also hoping to be able to

travel a couple of times a year and they expect that it will cost them $$12,000$

annually, in addition to their current vacation spending of $$6,500$ per year. They

also anticipate extra healthcare costs of $$5,000$ annually. Their current expenses are

as follows:

Their marginal tax rate is $30\%$ and their average tax rate is $24\%.$ They expect these

tax rates to continue into retirement.

Nick's Pension Info:

Current pensionable earnings

Annual increase in PE expected

Years of service expected at retirement

Age at which pension begins

Indexation of annual pension

$\%$ of pensionable earnings$/$year of service

Number of years averaged for final PE

Average final pensionable earnings

Anna's Pension Info:

Current pensionable earnings

Annual increase in PE expected

Age of retirement

Current combined contribution rate

Current balance

Investment return on these savings

RRSP Assets:

Nick's current balance

Anna's current balance

Rate of return

Nick's unused RRSP contribution room

Anna's unused RRSP contribution room

TFSA Assets $($total for both$)$

Government Benefits:

They should both qualify the max CPP $($today$\text{'}$s $ $)$

$$1,365/$month

$$718/$month

Inflation:

Assumed to be $3\%$

Life expectancy age $90.$

They have no other savings at this time. Will they have enough to retire?