How much will derek need to save each month

Reference no: EM131967144

Question: Derek is 45 years old and works as a radio producer for the CBC. He's done a decent job so far saving for retirement and has $20,000 in his RRSP along with another $150,000 in his employer's defined contribution plan. He plans to retire when he's 65 and estimates that he will be making about $120,000 and will need about 80% of that to live on. He expects to live until age 95. His investments are currently earning 7% and in retirement he will rebalance his portfolio and expect a lower rate of return (3%). Ignore CPP and OAS in the calculation.

a. How much will Derek's current investments be worth at age 65?

b. How much will Derek need to have saved at age 65 to support his lifestyle given the information above?

c. How much will Derek need to save each month to make up the difference?

Reference no: EM131967144

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