What you need to retire in canada 2013 - How much is a big question when it comes to retirement and a question that doesn’t have a simple answer. It all depends on a lot of factors but Canadians have been successfully retiring for years so there is some help at hand.
What you need to retire in canada 2013
Generally you should start saving for retirement the minute you enter full time employment. This means aged 21-22 you start putting 10-15% of your earnings away to be locked until 60-65 years old when you can finally pull the money and have a decent life without work. Of course sadly it doesn’t always work out that way and this also relys on good invested money to give you a large enough sum at the end of it all.
if you start later than it’ll start becoming a need for at least 15-20% of your income and obviously you have the save more and more aggressively the later you stat. Not the best situation!
According to an article by Gordon Powers from MSN “These days CPP/QPP and OAS will deliver a maximum of approximately $17,400 a year for a 65-year-old ($34,800 for a couple). That’s just $1,450 a month, all of which is taxable. Chances are, though, you won’t see that full amount.”. The good thing is that it gives you a descent base. If you have paid off your home it should give you enough for food at very least and the money you have left from your own savings will be for living.
As a number to aim for some believe $500k is adequate. That would give you an additional 14k a year if you retired at 65 and lived to 100. Of course a life at that level is extremely modest. A total of less than $30k a year is not easy but many retired people are happy to live modestly.
Now if you want some fun in your life it seems that you will have to edge closer to the $1million mark but according to a Canadian Payroll Association survey many think you may need up to $3 million.
As the article from the Globe & Mail points out, some people just want to be able to not have to go to work in the mornings whilst others want to travel the globe. How much you need is all related to what your plans are. Luckily you do’t have to worry about medical costs in quite the same way as American retirees.
Related: How to Save More for Retirement
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