Anne starts to work for XYZ Company when she is 24 years old, making $66,000 per year. One of the benefits she is offered is voluntary contribution to a 401-K plan. Although she would like to maximize her contributions, Anne calculates that she will only be able to afford to contribute 6% of her salary at first. Assuming that she receives salary increases of 3% each year and stabilizes her expenses, she intends to increase the contribution to 8% of her salary when she is 35 years old and to 10% when she is 45 years old. Anne believes that she will be able to live comfortably if she receives $60,000 per year from the 401-K plan in each year of her retirement. The actuarial estimate of her life expectancy is 85 and the assumed discount is 7%.

1. Given the assumptions, how much will Anne have in her 401-K when she is 55?
2. Will Anne be able to retire at 55 years old and receive the benefits she anticipates needing?
3. If Anne lived to age 90, would she have enough in the 401-K to continue receiving payments at this level?
4. What changes in the assumptions could negatively affect Annes retirement plan?