Retirement Calculator Canada

Are you counting down the days until retirement? Make sure you are prepared and have thought through all the important things you will need. Consider more than just your retirement account balances. Think about your lifestyle and spending habits. Many retirees are surprised how much they spend in the first few years of retirement getting used to working where they no longer have an active income. Either way if retirement is on the horizon for you or a major milestone you want to achieve, set a clear goal, and plan a reward for achieving it to help motivate you. Instead of planning an age or a date focus on a financial target that will produce the quality of life you are looking for.

Retirement Calculator Canada Excel

Have you been looking for a way to plan or track your retirement with an Excel spreadsheet? Real retirement planning is more involved than what a typical spreadsheet can do. Sheets like this you can find online can help you get in the right direction but are always static. Our lives however are extremely dynamic and we need to be constantly ready to make adjustments as life changes so fast. Consider meeting with a designated professional, i.e. a Chartered Life Underwriter, or Certified Financial Planner who is familiar with the planning tools you are looking for and can help coach you on how to stay on track with a plan. Millions will attest to the advantages of working with a good coach. Just like going to the gym, if you do all the exercise wrong you won’t get the results you want. A good coach can help you stay on track, be accountable and perform the exercises correctly for the max benefit during your workout. The same method works for your financial life. Keep in mind, you are the one that still has to perform the workout.

What Are the Best Retirement Calculators

Most Canadians look at retirement as a single amount of money in an account that they need to have in place. Then they look at how they will draw down from that asset or live off of the earnings. IN the modern technology world many are taking the necessary time to find side hustles and other methods of creating income or cash flow to support, augment or even replace their previous retirement plans. Consider what you need in retirement. It always comes down to spendable net income. Then look at what will happen as you age with changing costs, medical inventions and health risks etc. How can you create an environment where you have peace of mind, guarantees for your income and can protect your money from market volatility? The best retirement calculator isn’t actually a calculator at all. It is a clear and crystal goal on monthly or annual income and how much of it you will need over and above any CPP or OAS incomes you may have.

Many Canadians with children and grandchildren will be able to create a passive income stream by becoming the banker for their family members needs. This can include car purchases, mortgages, and other big financing items. When done correctly and with some training and education this can create a very stable, effective way of supporting income and the family as a whole. Then when you pass away the estate values can replenish the payments streams made by those family members. Learn how to put this into action by registering for our training session.

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What is considered low income for seniors in Canada?

The maximum CPP income for Canadians in 2020 was $1175 monthly, but the average amount actually being received was only $672.87 in October of 2019. Many receive far less than the maximum because they did not contribute to the max for many of their working years and in some years not at all (such as with stay at home spouses). According to stats Canada income survey from 2017 that was released in February of 2019 (Canadian Income Survey), the median after-tax income was $59,800 across the nation.

For seniors, the medium after-tax income (household) was $61,200 where at least one income earner was over age 65. This stat of course can be misleading as many people are working longer and therefore are finding that the years just prior to retirement from ages 55-70 are their highest income earning years of all time. A quick estimate at $15 per hour for 40 hours per week and 50 working weeks a year would be a gross income of $30,000. This would be an equivalent minimum wage in many areas with full-time income. Many seniors are still living below this level even with the income provided by CPP, OAS, and the guaranteed income supplement if they qualify for it.

As you plan for retirement, create security by educating yourself on ways to protect and grow your wealth and savings where they are both liquid and insulted from the vast risks of market volatility.

What is the average nest egg in retirement?

From the CIBC retirement poll we noted above 32% of Canadians have nothing set aside for retirement. That makes the average for those folks pretty easy to estimate. So when we pull out that group of people and only look at those who had savings in the same age group from age 45 – 64 they averaged $345,000 for retirement savings. When you take a peak at this segment and look deeper 49% of the Canadians with savings had less than $250,000 in savings as they approach retirement.

In summary, 32% have nothing saved leaving 68% with at least something to show for decades of being in the workforce. When you consider that almost 50% of that group had less than $250,000 put away we can gather the following for the age 45 to 64 bracket:

34% of Canadians have more than $250,000 set aside.
34% of canadians have $250,000 or less saved for retirement
32% have nothing at all

This is substantially lower than what the respondents expected they would need of $756,000 at retirement age. In other words Canadians that have saved are 300% lower than they need to be for the retirement life they have been seeking. The good news is that savings can start today. Learn how to maximize the savings potential you have and create generational wealth by accessing our online training.

Reserve Your Slot To Our Training To Discover
The Process Of Becoming Your Own Banker!

Watch our on demand training and discover the tools we used to take total control of our finances, and build independent wealth with consistent, guaranteed returns.

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Get access to our expert financial advisors and coaches that can help you make a plan and calculate retirement in your life. Register for the retirement training so that you can create the retirement that you want.

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Retirement Calculator Canada