Marcia, age 56, is starting to think about retirement. She plans to retire at age 65 and she expects to live to age 90. She estimates that she will need $50,000 per year, after-tax, in retirement to give her the lifestyle she wants. She will receive an indexed pension of $30,000 per year, before-tax. She will also receive a retirement pension of $700 per month from the Canada Pension Plan (CPP) and $600 per month in retirement income from the Old Age Security program. CPP and OAS payments are before-tax. She currently has $70,000 in her RRSP. For planning purposes, Marcia is using an 8% nominal rate of return on savings before retirement and a 6% nominal rate of return during retirement. Inflation is expected to remain at 2% per year throughout her lifetime. The tax rate applicable to Marcias situation is 25%.

What is the after-tax present value, at retirement, of her required retirement income of $50,000 per year? Show all the work