John, age 52, has S100,000 saved for retirement. He is currently saving 10% of his annual income of $50,000 on a monthly basis. His employer matches his savings contributions with $2,000 annually, paid on a monthly basis. John projects that inflation will be 5% and he can earn 10% before and during retirement. John needs a wage replacement ratio of 80% of his preretirement income. He plans to retire at age 62 with Social Security benefits of $10,000 in today's dollars. His life expectancy is age 100 1. How much will John's salary be at age 62 assuming his income increases yearly equal to the inflation rate? 2. How much are the Social Security benefits expected to be at age 62? 4. How much capital will John need at age 62 to fund his retirement? 5. How much will John have at age 62, assuming he continues his current savings and investment program? 6. How much additional monthly savings would be required for John to retire at age 62? 7. After reflection, John wants to know at what age he can retire, assuming he continues to follow his current savings plan. Make a schedule for years 62, 64, and 66 so John can make informed decisions. 8. You remind John that if he wait until age 66 to retire, he will receive $14,000 in Social Security benefits in today's dollars rather than the reduced benefit of $10,000 he would receive at age 62. Would this additional cash flow suggest that he could retire at age 66, or perhaps earlier? 3. What will be John's retirement income need in the first year of retirement, taking into consideration his anticipated Social Security income