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    Retirement Savings

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    Toronto Star
    This document provides a chart to help individuals determine what percentage of their current income they need to save in order to meet retirement targets of replacing 50%, 60%, or 70% of their pre-retirement income at ages 63, 65, or 67. The chart lists sample current income amounts and corresponding savings rates needed for different retirement goals. It assumes the individual saves in an RRSP, earns a 5% investment return, and purchases an inflation-adjusted life annuity in retirement.

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    Retirement Savings

    Uploaded by

    Toronto Star
    673 views1 page
    This document provides a chart to help individuals determine what percentage of their current income they need to save in order to meet retirement targets of replacing 50%, 60%, or 70% of their pre-retirement income at ages 63, 65, or 67. The chart lists sample current income amounts and corresponding savings rates needed for different retirement goals. It assumes the individual saves in an RRSP, earns a 5% investment return, and purchases an inflation-adjusted life annuity in retirement.

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    Retirement savings

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    This document provides a chart to help individuals determine what percentage of their current income they need to save in order to meet retirement targets of replacing 50%, 60%, or 70% of their pre-retirement income at ages 63, 65, or 67. The chart lists sample current income amounts and corresponding savings rates needed for different retirement goals. It assumes the individual saves in an RRSP, earns a 5% investment return, and purchases an inflation-adjusted life annuity in retirement.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    673 views1 page

    Retirement Savings

    Uploaded by

    Toronto Star
    This document provides a chart to help individuals determine what percentage of their current income they need to save in order to meet retirement targets of replacing 50%, 60%, or 70% of their pre-retirement income at ages 63, 65, or 67. The chart lists sample current income amounts and corresponding savings rates needed for different retirement goals. It assumes the individual saves in an RRSP, earns a 5% investment return, and purchases an inflation-adjusted life annuity in retirement.

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    Saving to meet targets

    To use this chart When to retire: Age 63 Age 65 Age 67


    1. Pick a retirement age PER CENT OF CURRENT INCOME DESIRED
    2. Pick the per cent of your current 50% 60% 70% 50% 60% 70% 50% 60% 70%
    Working
    income you would like in retirement income* PER CENT OF INCOME TO SAVE
    3. Find the income nearest yours $12,451 0% 0% 0% 0% 0% 0% 0% 0% 0%
    4. See what per cent of income to save 21,056 0 0 0 0 0 0 0 0 0
    for your income and age targets
    5. Prepare to save more if you start after
    28,530 0 3 11 0 0 7 0 0 5
    age 30, or you wish to retire sooner 35,782 3 10 15 0 7 10 0 5 8
    Note: Savings rates are on top of Canada
    Pension Plan deductions
    42,803 7 12 16 5 8 11 3 6 9
    Assumptions: Your income will remain in the same range 51,381 9 13 17 6 10 13 4 7 10
    while you work. You save in a registered retirement
    savings plan, and earn a 5% investment return. Price
    61,270 11 15 19 8 11 14 6 9 12
    inflation averages 2%. There are no changes to Canada 73,958 12 16 20 9 13 16 7 10 13
    Pension Plan or Old Age Security/Guaranteed Income
    Supplement. You buy a life annuity that pays 2 per cent 95,627 14 18 22 11 14 17 9 12 15
    more each year in retirement. Note: The chart ignores
    the RRSP limit, now only 18 per cent of gross income. 150,000 16 21 25 13 17 21 11 14 17
    Source: C.D. Howe paper by David Dodge, Alexandre Laurin, Colin Busby * Average labour income for each tenth of population, ages 30 to 55

    SOURCE: Bloomberg

    SOURCE: Company reports, Bloomberg

    SOURCE: Statistics Canada

    Size:
    3 column by 20 lines
    File name:
    bu-saving-to-meet-retirement-bl.eps
    Designer:
    XXXXXXX
    Edition date:
    day, XXXX, ‘07

    * ➤

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