What do you fear about retirement?

Apr 15, 2008

Retirement Planning - How Much Money Do You Need for Retirement?

Contrary to the advice of those financial advisers who recommended you need 70-80 per cent of your pre-retirement income to retire comfortably, most retired people get by on a lot less.

Surprisingly, research by Statistics Canada found that people whose pre-retirement income was $70,000 or greater tended to retire on about 45 per cent of that – or around $31,500. Those who earned around the average national wage – between $40,000 and $50,000 – retired on 59 per cent of their pre-retirement income.

Most interestingly, only one in six people with a pre-retirement income of $40,000 or more had a replacement ratio of 75 per cent or more.

The Spoilers - Countries Against Early Retirement

  • Britain plans to gradually raise its age of retirement at which full state pensions will kick in. By the year 2044, the U.K,'s retirement age will be 68.
  • The U.S. and Germany also plan to raise their retirement age to 67.
  • Italy and Belgium have already raised their age of retirement to 60
Interesting Retirement Fact

Two-thirds of Canadians retire before the full Canada Pension Plan/Quebec Pension Plan benefit age of 65, oftentimes involuntarily. What does this mean?

What Would You Do If You Could Replan Retirement? — Top Five Replies from Retirees
  • Save more or save less money — 39 percent
  • Take better care of their health — 29 percent
  • Live closer to their children — 24 percent
  • Retire earlier — 23 percent
  • Get involved in more hobbies — 21 percent

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