Are you saving enough each month to live the way you would like after you retire? To answer that question, you first need to find out:
- How much income you expect to have when you retire
- How much money you will need to live the way you want.
To help you get the full picture, there are many excellent calculators available on the Internet. Each one has its own strengths and weaknesses. Here are two of the best:
| Calculator: |
Use When: |
Weaknesses: |
| Human Resources and Social Development Canada’s Canadian Retirement Income Calculator |
You will be counting a lot on income from government plans or workplace pensions when you retire
You have accurate pension statements to work from |
Makes assumptions about inflation
Assumes you will need 70% of your pre-retirement income; your numbers may be different |
| Fiscal Agents’ Retirement Planner |
You think you will need a lot more or a lot less than 70% of your pre-retirement income to live on during retirement
You want to change the inflation rate to see the effect on your plans |
Uses rough estimate of your government and pension payments as a percentage of after-retirement income; your numbers may be different |
Either calculator will suggest a monthly savings amount today that will help you achieve your retirement lifestyle. The question is: will you be able to save that much? If not, what should you do? Learn more now.
Watch this video of Malcolm Hamilton, a Principal with Mercer Human Resource Consulting Limited, with Rob Carrick from the Globe and Mail discussing how much you need to save for retirement.