Planit:Calculating and Entering Contribution Pension Plans Exercise

From Planipedia

This case study is specific to financial planning in Canada, so has fixed values rather than indices by country. For a similar case study applicable to other countries, please see Planit:UK Contribution Pension Plans Exercise or Planit:Entering Other Revenues Exercise.

Solve for the following problem:

Harold Woodhaven has a contribution pension where he works, invested in various cash products. The LIF account for the pension has a total balance of $20,000, of which $16,000 has been invested capital.

As a banker, Harold earns $60,000 and 5% of this salary goes toward his pension. His employer contributes an additional 6% of his salary. He saves $2,000 into his RRSP, $3,000 into his open investments, and earns $1,500 in investment income.

Donna’s salary is currently about $70,000. She saves $5,500 into her RRSP, and earns $150 in investment income.

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