June 3, 2011
How Much Money Do You Need to Retire?
Did you know you might be able to live on as little as 43% of your pre-retirement working income once you retire? Some experts say a couple with 2 children and a household income of $100,000 in their working years could maintain their lifestyle during retirement with as little as $43,000 a year. This would come from pensions, RRSPs, CPP and OAS. Why such a drop? After retirement, large expenses such as mortgage payments, child costs, employment costs, income tax and even retirement saving itself decline or disappear. Still – every person is different and needs a unique plan. It’s a balancing act - save too little and you won’t have enough; save too much and you will be depriving yourself unnecessarily during your earlier years.
