Alonzo is 35 years old and has a 2 percent defined-benefit plan based on the average of his last five years of income. He just started saving $2500 per year in an RRSP on which he expects to earn 7 percent. Assume that the average of his last five years of employment earnings is $65 000. How much of an annual pension will he have when he decides to retire at age 65 and expects to live to age 85?

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The Answer of Alonzo is 35 years old and has a 2 percent defined-benefit plan based on the average of his last five years of income. He just started saving $2500 per year in an RRSP on which he expects to earn 7 percent. Assume that the average of his last five years of employment earnings is $65 000. How much of an annual pension will he have when he decides to retire at age 65 and expects to live to age 85?

Alonzo Is 35 Years Old and Has a 2 Percent