What is Whole Life Insurance?

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 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.