How much do I need to retire?

It depends on how you want to spend your time in retirement. While some expenses typically disappear in retirement (e.g. mortgage payments), other expenses, such as travel or leisure, often increase. Many financial planners estimate that you will need 60 to 80 per cent of pre-retirement earnings to maintain the same lifestyle after you retire.

You should estimate how much you expect to receive from all your income sources. Your personal savings will need to make up any shortfall to reach your desired retirement income.

The Canada Life Retirement Goals tool can help. It will show you if you are on track to reach your desired retirement income, based on the information you enter about your current income, additional savings and investment risk tolerance. The information you enter will be saved each time you visit the Retirement Goals tool, helping you track your progress. To access the tool go to the mycanadalifeatwork.com and select the Retirement Goals tool.

You can calculate how much you can expect to receive from all retirement income sources, including CPP/QPP and OAS, the DC Pension Plan and other employer-sponsored pension plans, and your personal savings, with Service Canada’s Canadian Retirement Income Calculator.

Calculate your net worth – the difference between what you own and what you owe – with the net worth worksheet.

Use this worksheet to calculate your day-to-day income and expenses now and those you expect to have during retirement. This will give you an idea of how much income you will need when you retire.

Review the Financial and retirement planning tools brochure for more information and useful resources on planning for retirement.

You may wish to discuss your retirement plans and retirement planning options with a personal financial advisor. You are responsible for any costs associated with seeking such advice. If you don’t have a financial advisor, the Employee Assistance Program (EAP) can help you.