The first question people always ask me is “So how much does an average person need to save for retirement”. There is a misconception out there that you need millions and millions of dollars to live a dignified and independent retirement. This is simply not true. It is all based on your lifestyle needs. If I asked everyone what their favorite food was, all the answers would be different, some would be the same but a lot would be different, the answer is the same for retirement planning.
First what you have to do is add up all your incomes that you expect to receive during retirement; CCP, OAS, company pension etc. and compare that number to what your projected expenses will be; food, shelter, entertainment and don’t forget your wish list; travel, golf memberships, and vacation properties. Then compare what you have coming in, to what you expect to have going out; index for inflation and poof the difference is your Magic Number. Everybody’s magic number will be different.
There are lots of calculators out there to help you, but they are very basic, if you really want to know what your Magic Number is talk to a Financial Planner. Calculators available at our website at: t.marshall@securityfinancial.ca
http://www.securityfinancial.ca/
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