Greg and Nadia, both aged 48, plan on retiring at age 65. They do not belong to an employer sponsored pension plan and have a combined savings of $72,000 in their RRSP's (Greg has $26,000 and Nadia has S46,000). Greg's annual salary is $52,000 a year and Nadia's annual salary is $61,000 a year. Both Greg and Nadia tell you that they plan on making the maximum allowable RRSP contributions, based on their yearly earnings, at the beginning of the year, every year going forward. They believe they can earn a rate of return on their investments of 5.3%.

Assume the following:

It is January 1, 2022

Greg and Nadia's income will remain the same until they retire.

Greg's average tax rate is 29%, Nadia's average tax rate is 30%

Inflation will average 2%

Greg's RRSP contribution room on Dec 31, 2021 is $0

Nadia's RRSP contribution room on Dec 31, 2021 is $O

In retirement, Greg and Nadia believe they can earn a rate of return equal to 4.5%

Answer the following questions:

How much money will Greg have saved when he retires at age 65 in real dollars? (3 marks)

How much money will Nadia have saved when she retires at age 65 in real dollars? (3 marks)

When Greg turns 65, what must he do before he can withdraw funds from his RRSP? (1 mark)

If Greg believes he will live to age 85, how much can he withdraw monthly at the beginning of each month? (2 marks)