Moving to the next question prevents changes to this answer Question 1 of 4 Question 1 10 points Save Answer Melvyn, age 47, is starting to think about retirement. He does not want to rely on government pensions, as he is unsure of what he will receive from them by the time he retires. He plans to retire at age 67. He has been contributing to a defined contribution pension plan through his employer. He has earned income of $90,000 and he contributes 5% of his earnings and his employer matches the amount. The current balance on his DCPP is $366,000. He also has an RRSP that he has been contributing $500 per month to The current balance of his RRSPS $225,000. Melvyn plans to continue making the same contributions to his DCPP and RRSP until he retires. He assumes that he will need gross income of $65,000 per year to cover his taxes and expenses in retirement Will Melvyn have enough money to retire in 20 years time? (6 marks) What recommendations would you give Melyyn? (3 marks) You will need to make an assumption about the rate of inflation, the rate of interest and his life expectancy. State these assumptions at the beginning of your response. Assume these rates remain constant from today until Melvyn dies. Your assumptions should be unique and should not match another students. (1 mark) For the toolbar.press ALT+F10 (PC) or ALT-FN-F10 (Mac) BIVS Paragraph Arial 14px A 2 I. XOOQ T " 6.) Moving to the next question prevents changes to this answer Question 1 of 4 Question 1 10 points Save Answer Melvyn, age 47, is starting to think about retirement. He does not want to rely on government pensions, as he is unsure of what he will receive from them by the time he retires. He plans to retire at age 67. He has been contributing to a defined contribution pension plan through his employer. He has earned income of $90,000 and he contributes 5% of his earnings and his employer matches the amount. The current balance on his DCPP is $366,000. He also has an RRSP that he has been contributing $500 per month to The current balance of his RRSPS $225,000. Melvyn plans to continue making the same contributions to his DCPP and RRSP until he retires. He assumes that he will need gross income of $65,000 per year to cover his taxes and expenses in retirement Will Melvyn have enough money to retire in 20 years time? (6 marks) What recommendations would you give Melyyn? (3 marks) You will need to make an assumption about the rate of inflation, the rate of interest and his life expectancy. State these assumptions at the beginning of your response. Assume these rates remain constant from today until Melvyn dies. Your assumptions should be unique and should not match another students. (1 mark) For the toolbar.press ALT+F10 (PC) or ALT-FN-F10 (Mac) BIVS Paragraph Arial 14px A 2 I. XOOQ T " 6.)