What do you fear about retirement?

Dec 16, 2009

How much money do I need to retire

Particularly if you are a baby boomer quickly approaching retirement, you may be concerned whether you are saving enough for retirement.

The good news is that many people may be overestimating how much money they need once they leave the workforce. Several research studies show that people generally spend a lot less as they age.

Even so, this is not a reason to become casual about how much you are saving. Right now, 44 per cent of working Canadians have no retirement plan or RRSP. In the private sector, only one in five workers belongs to an employer pension plan. And only one-third of Canadian households are saving enough to cover their basic expenses in retirement.

Pension funding issues, bankruptcies and the lack or loss of personal savings have, unfortunately, left more Canadians to rely solely on Old Age Security and the Canada Pension Plan in retirement. Those retirees, who receive an average of $500 per month, are living in poverty.

Here are some retirment sayings and retirement quotes:

    We only need to save $49 a month for a happy retirement. That's how much we'll need for our cable TV bill.
    - from Glasbergen cartoon

    It's an absolute fact that as people get older they spend less money.
    - Rick Ferri president of money-management firm Portfolio Solutions in Troy, Mich.

    You can be young without money but you can't be old without it.
    - Tennessee Williams

    By the time I have money to burn, my fire will have burnt out.
    - Author Unknown

    Money isn't the most important thing in life, but it's reasonably close to oxygen on the "gotta have it" scale.
    - Zig Ziglar

If you want to retire happy regardless of your income, then you should read How to Retire Happy, Wild, and Free. It gives retirement wisdom that you won't get from your financial advisor.


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