Roger Bennett is 60 years of age. When he retires at age 65, he would like an income of about $24,000 per year after tax. He expects that he will be taxed at a marginal tax rate (MTR) of 22% on retirement. He will get CPP and OAS benefits totalling about $12,000 per year. He wants the balance to come from his RRSPs. He currently has an RRSP balance of $400,000. Not including future RRSP growth as a factor, how much more must Roger have in his RRSP before retirement to achieve his goal of receiving $24,000 per year after tax (rounded to the higher thousand), if he is expected to live to be 90 years of age?

Answer rating: 100% (QA)

To calculate how much more Roger must have in his RRSP before retirement to achieve his goal of receiving 24000 per year after tax we need to consider ... View the full answer