Herbert and Myra are working with their financial planner to develop a savings program aligned with their personal retirement objectives. At retirement, they hope to have sufficient non-regis- tered savings to accommodate an annual income of $60,000 after-tax, for 25 years, indexed for annual inflation of 2%. If, during retirement, Herbert and Myra can earn an annual return of 7% before tax (compounded annually), and they anticipate a 35% marginal tax rate, what savings amount do they need at the beginning of retirement? Assume the retirement income will be paid annually at the beginning of each year.