15 ITEM SET 13: CAPITAL NEEDS ANALYSIS Callie and Trinity Jackson are married and interested in planning for their retirement. Callie is 47 years old, while Trinity is three years younger. They would like to plan on retiring when Callie is age 65, which is when their mortgage on their home will be paid off . Their mortgage payment is $2,000 per month. Callie earns $75,000 and Trinity earns $105,000. They have current savings of $250,000 and would like to plan on a wage replacement ratio (WRR) of 80 percent, including Social Security. They currently save $15,000 each in their respective 401(k) plans. Neither of their plans offer an employer match. They have been reading that 70 percent to 80 percent for wage replacement is optimal. They both reach full retirement age under Social Security at age 67. Callie and Trinity's Social Security retirement bene on at full retirement age is projected to be $2,500 and $3,000 per month, respectively. They want to plan on living until Trinity is age 95. Assume that inflation is two percent and they can earn seven percent on their investments. 1. Calculate their needs at age 65 and their annual savings requirement