Marty, age $56,$ and Marcia, age $53,$ are starting to think about retirement. Marty plans to retire at age $65$ and he expects to live to age $85.$ Marcia plans to retire at age $65$ and she expects to live to age $90.$ They estimate that they will need $$68,000$ per year, after$-$tax, in retirement to give them the lifestyle they want. Marty will receive an indexed pension of $$30,000$ per year, before$-$tax and Marcia will receive a small non$-$indexed pension of $$7,500$ per year, before$-$tax, from a previous employer. Marty will receive a retirement pension of $$1,100$ per month from the Canada Pension Plan $($CPP$)$ and $$600$ per month in retirement income from the Old Age Security program. Marcia will receive a retirement pension of $$400$ per month from the Canada Pension Plan $($CPP$)$ and $$600$ per month in retirement income from the Old Age Security program. CPP and OAS payments are before$-$tax. CPP payments begin at retirement while OAS payments begin at age $65.$ They currently have $$140,000$ in RRSPs and $$70,000$ in TFSAs. For planning purposes, they are using a $7\mathrm{.}5\%$ nominal rate of return on savings before retirement and a $4\mathrm{.}5\%$ nominal rate of return during retirement. Inflation is expected to remain at $3\%$ per year throughout their lifetime. The tax rate applicable to their situation is $25\%.$ Please use the appropriate discount rate and mode $($begin$/$end$).$

$1.$ Before they retire, the couple decides that they will deposit $$1,100$ per month at the end of each month into Marcia$$s RRSP$.$ Including the current value of their RRSP$,$ what will be the after$-$tax value of their RRSP by the time they reach retirement age?

$2.$ What is the after$-$tax future value, at retirement, of their TFSA?

$3.$ Based on your answers to the questions above, will they have enough money for retirement? EXPLAIN USING THE CALCULATIONS ABOVE.

$4.$ Assuming that they do not have sufficient retirement income, what options do they have to ensure that they have sufficient money for retirement?