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Suzanne is 65 years old and has worked for BCE for 25 years. She is a member of a Defined Benefit Pension Plan that will pay a retirement benefit of 2% of the average of her best 3 years of earnings multiplied by her years of service. Her salary in the year before retirement was $82,000, and rose by an average of 5% per year over the last few years. Suzanne also has $200,000 in her RRSP invested in Canadian stocks. She estimates her income needs in retirement at $50,000 a year before tax.
What will be Suzanne's annual pension benefit from BCE?
Please help, I have no idea which formula to use.
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