Originally Posted by

**Eclectic12**
I suspect this formula is misleading.

The OP says "after 26 years of pensionable service" which says there is a pension at play. This means that when the RRSP room is added, the formula will be 18% x earned income - pension adjustment (PA).

Should the pension in question be a DC pension, it likely is not too bad as the PA will be relatively small.

Should the pension be a DB pension, the PA will be much larger. To illustrate, my friend's earned income using the "18% x earned income" gives $18.5K but his DB pension PA of $14.5K cuts it down to $4K.

Assuming income is reasonably the same for 2015, the amount of RRSP contribution room added on the NOA may give a reasonable estimate.

While the OP says they have no RRSP contribution room, the 2016 tax return just filed, the NOA for this return should be granting new RRSP contribution room of $600 or more.