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How is your retirement planning coming along? If you haven’t managed to start or stick to a plan, you’re not alone. A 2016 Nanos survey, conducted for CTV News, found a slight majority of Canadians think they will be able to retire completely at age 65. However, 41 percent say they do not save enough each month for their retirement, while just 24 percent save enough and five percent save more than enough.
How much you need to save depends on how you want to spend your retirement. The Government of Canada’s retirement planning website suggests you consider:
- Your travel plans
- Your hobbies
- Your age when you retire
- If you'll work after you retire
- If you'll have children or grandchildren to support
- Where you want to live
- Whether you’ll have debt to pay, such as a mortgage or a loan
One way to calculate what you might have to save for retirement is to compare your current spending with your expected retirement spending. For example, while you won’t need to spend money commuting to work, you may want to budget for more travel. The government has two calculators that can help:
- The Canadian Retirement Income Calculator will help you estimate your retirement income
- The Budget Calculator will help you better understand your post-retirement expenses
While you know your own retirement objectives better than anyone else, it might take the assistance of an expert to reach them. A financial advisor can work with you to figure out just how much income you might need for retirement, and help you set up a plan to make your retirement dreams a reality.