How Much Money Do Canadians Think They Need at Retirement?
How much capital do Canadians think they’ll need to retire? On January 13th, 2019 RBC published the results of their 2019 RBC Financial Independence in Retirement Poll.
Do you have a Written Retirement Income Plan?
What was the National Average for Private Savings?
How Many Had a Financial Plan?
54% of respondents say they have a Financial Plan but 32 per cent of those say that plan is only in their head and not actually written down. That means only 22% have a written financial plan. Do you have a written retirement income plan?
How Much Annual Income Would $787,000 Produce?
I broke down the scenarios into four separate case studies as follows. In each case, I determined the amount of money that could withdraw from an RRSP/RRIF from the age of retirement until age 95. The goal is to have a 90% probability of not running out of money before age 95. The blend of the portfolio is assumed to be 50% fixed income and 50% equities. The software I use is the Retirement Optimizer.
- Case Study 1: A single individual is male, age 65.
- Case Study 2: A couple, currently age 55, retiring at age 65. Their RRSPs total $787,000 at age 55. No additional contributions from age 55.
- Case Study 3: A couple age 65. Their RRSPs total $787,000. Both retire and start CPP and OAS.
- Case Study 4: A couple age 65. Both retire and getting CPP and OAS. They are nervous about investing in the stock market. What would an annuity pay them for life?
If you’d like to know the results, please fill in your name and email address in the form and I’ll email the results for each case.
Not sure where to start with your retirement plan? Enter your name and email in the box on the right to complete the Goal Planning Checklist. Instantly identify the strengths and weaknesses in your current financial plan.
[activecampaign form=114]
Sources
