There are four factors that determine how much money you need to retire!
Walton Financial Group in Barrie, Ontario will help you plan for your retirement
The first factor is determining when you plan to retire. Quitting work at 55 requires more money than at 65, because your savings and investments have to support you for longer. The early going is all on you: Government programs won’t start paying you until you’re in your 60s.
The second factor is how much of your working income you plan to replace in retirement. 60% is a good target.
The third factor is what sources of income can you count on. If you’re lucky, you have a gold-plated pension from your employer to fund your retirement lifestyle. However, anyone who has worked and lived in Canada for a few decades can at least depend on the Canada Pension Plan (CPP) and Old Age Security (OAS).
Don’t underestimate the combined impact of these government programs: A 65-year-old who has lived in Canada for most of his or her life can collect more than $8,300 a year from OAS.
Also, the CPP kicks in for people who have worked in Canada. As an example, a 65-year-old has worked in Canada, they will also collect CPP based on how much they have earned and contributed over the years. A typical CPP payout for a 65-year-old is about $9,100 a year, but it can range up to $15,000 or more for those who have earned higher incomes and worked the longest.
The fourth factor in determining how much you need to put away is how aggressively you plan to draw on your savings.
This is where the team at Walton Financial Group can really help you in two ways. First, by helping you with your investment strategies to maximize your portfolio and secondly by advising you about the optimal withdrawal plan to provide the desired income while keeping the risk of running out of money to a minimum.
Call Walton Financial Group in Barrie, Ontario to set up a meeting with a retirement planning advisor today.
