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How Much Do You Need To Retire In Canada? It Might Be Less Than You Think

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Comments How Much Do You Need To Retire In Canada? It Might Be Less Than You Think

I have no intention of retiring in Canada way too expensive Comment from : ruggero58

I have a question When people are assessing their ability to retire based on their net worth/assets - how do you account for property/real estate? Do I include the value of my primary residence in my Retirement egg - assuming that I will be selling this property at some point (maybe when I'm 77+, and I no longer want to manage the property) and then be using all or a portion of the capital from the sale of the house to help with my retirement egg Maybe I plan to downsize or move to another type of accommodation This is a big part of some peoples plan for retirement - they own their own, and expect that this is part of the retirement nest egg that they have been nurturing for years How do we account for this part of the puzzle I appreciate your comments , and by the way - I love your channel - its so great to have Canadian content from such a reliable source Comment from : Pam Steele

Great Video - I highly recommend reading the work of Wade Pfau who is a retirement expert In a low earning environment which we have had he says that the 4 rule greatly increase the probability that you outlive your savings Comment from : JB_MakesGames

I was using an online calculator and also some online excel templates I am planning to retire in about 20 years and I find that the withdrawal was not 48K The future vakue was 87K or so and over the next 25 or 30 years, it kept going up with inflation and close to age 90, that 48000 that I planned for was over 150K and drained out a million plus pretty quickly Also The taxes were a big pain How much tax a retired couple pays on a 48K from RRSP? Is it around 12 with pension splitting It was pretty discouraging to see that the money did not last even to age 80 Now 48K is well below the 50 of the income Also, I hear the OAS for people of my age will start at 69, and my wife will not have any CPP and I might have to wait another 7 years before she gets the OAS It is not that easy even if you work so hard Comment from : Fassel Hussain

These numbers are really high don’t think I can retire and I don’t have much saved In ten yrs Im 50 now Comment from : Man of Steel

I am look after my own retirement investment I pay NO FEE, NO TAXES , I invest in enhanced ETFs in a tfsa $1000 a month for every 100 thousand dollar investment ,regular income every month , never worry about capital de appreciation generational investment soooo easy 😊 Comment from : Roger Budgell

Consider the tax as that will inflate these number by 50 that's the game you will always die in debt Comment from : nishunk saxena

Is this amount of money debt free or with debt Comment from : Patrick Moore

Retired Canadians are now forced to return to the work forceThanks Justin Comment from : Sean Bhoy

Do you have a video for foreign investors that want to put money in Canada? Comment from : Diego Oliveira

You should switch the column headings - the nominal value should be the constant $69k, and the ‘real’ dollars should be the adjusted ones Comment from : Rado Suites

If your house is paid for you don't need much to live on You sure don't need $50k a year My $500 a month condo fee includes property tax and water Electricity is $50 Property insurance is $50 Phone and internet is $100 Driver's insurance is currently $100 but I will stop driving at 65 So that's $700 Add in $500 a month for food which is pretty good for 1 person Add in $100 a month for Miscellaneous (clothes, movies, booze) Now it's $1300 a month So the total is about $15500 a year before vacations I will spend at least $4500 to $9500 on vacations but even then I'm only up to $20,000 to $25,000 And the vacations could obviously be reduced if I had to So I think I'm set up well for retirement Comment from : spiegel

Just to simplify, on a 3 ROI you can withdraw about 5 for 25 years?brOn a 5 ROI you can with draw about 7 for 25 years?brIs that a correct assumption?brbrCurious what are the statistics of living beyond 90 years and what is the cost of living after thatbrbrAside from that I think the 4 rule is a great goal for people planning for their retirement early in life or financial independence It's an early lesson about the potential of wealth saved and invested earlybrFor people that are approaching retirement it is more important to plan for what you will have rather than what you wish you had Looking at your retirement as a draw down to 0 is much more feasible and is commonly practiced for the people who could not build a large nest egg Comment from : LooseArrowBoy

We are retiring this year with a monthly income of just shy of 10,00000 a month after taxes Comment from : Gordon Pitt

I found that I can purchase silver coins through Kitco and add to my RRSP any toughs thx Comment from : Jerzy Oszczak

Hi Adam I have question about crypto do I have to make income tax if I didn’t sell anything? Comment from : Jerzy Oszczak

Great content Love your approach Comment from : Robert Ross

Also consider, moving abroad to a cheaper country might reduce your needs of income Living in the Philippines ie and to keep your comparable lifestyle is 3:1 To live on 4500 in Canada is equivalent to live in the Philippines on $1,500 Comment from : Andrew Lander

WOW! This video smoked my boots I did calculations with your formula My monthly income is about $4865 monthly My monthly income does not include my 401K stash I don't have to touch my 401K money I live on my Pension and Social Security Income alone Your channel showed, I'm blessed so THANKS for that What I don't understand is why you financial guys always say 80 of your working pre-retirement income is NEEDED to retire That's a lie I made $128K per year working I live debt free and VERY WELL on $58K a year in retirement $58K per year isn't even 50 of $128K It's like 453 of $128K Yet I live real WELL! What's Up With That?brbrWhy do financial advisors always say you need 80 of pre-retirement income I have no mortgage No car payment No medical bills (Paid Insurance) No Family Expenses and my pension and Social Security are COLA indexed to USA CPI-W for inflation each year Are retired people spending money eating Gold Dust and taking Lunar Day Trips to dance on moon beams because, I don't get the 80 of working income requirement in retirement trope all financial advisors seem to robotically spit out no matter what the individual circumstancesbrbrDude I am NOT bashing you or your channel You are encouraging people to save, invest wisely and think seriously about every aspect of retirement planning BEFORE its too late Your work is VITAL I just don't understand some of the assumptions and metrics you include in your advice Comment from : Canis Lupus

What happens when you don’t…OMG Comment from : Laurie

So Adam If the TFSA has tax free money coming out of it why wouldn't the RRSP be drawn on more heavily while not taking CPP and OAS? Wouldn't it be better to save drawing on the TFSA when you have the increased taxable income? Binge-watched a whole bunch of your videos Thanks so much! Comment from : Allison_in_Canada

@Adam - think you have someone hijacking your thread below! Comment from : Danielle Robert

So does it make sense to hold off on CPP and/or OAS to max out (perhaps) at the No Go Phase? Doesn't make sense to me; but every case depends on individual circumstances I took early retirement at 62 after 42 years of service because I no longer enjoyed going to my job every day (politically correct description) Zippo retirement savings, major credit card debt and 5 years left on mortgage The plan was to seek part-time employment to help pay off debt Well the reality was, took early reduced CPP at just over $700 per month (would have received maximum if waited until 70), commenced Defined Benefit Pensions (x2), one included option of OAS equivalent until 65 when actual OAS kicks in and it ceases and could not find a part time job (have had to pay taxes since retiring) Lived on a strict budget and spent wisely also had some rental income Instead of working a part time job, worked on getting as healthy as possible (losing weight) taking personal responsibility for keeping as healthy as possible By the time I am 65, I will be mortgage free, debt free, stress free, prescription free, healthy (from what i can control) and free to travel if so desired, with guaranteed pensions that increase yearly with inflation and paid until death If my spouse outlives me, they will continue to receive 100 of my private pensions, until their death I can't complain Comment from : m p a t m

This is THE question everyone is asking Great Advice!! Thanks Adam!! Comment from : Life Starts at Retirement

I'm an American and I'd like to retire to Canada I'm 71 years old with a heart condition and diabetes I control my diabetes through weight control, exercise and diet No medication needed I also have COPD because of life long asthma But ironically, I'm as active as I've ever been I still do serious hiking, aerobics, weight lifting, etc But I'd still probably be barred from permanent residence in Canada because my age and health issues Comment from : Ricardo roams

Fantastic!!! Thank you for all your helpful videos A suscriber Comment from : AlwaysHappy

so 3 of ROI $500,00000 is interest only I will die with $500,00000 principal in the bank! should I melt down $50000000 till I am 90 years old and I will depend on my OAS+CPP+TFSA? Comment from : trung Thieu

Thank for the video you mentioned about medical bills but I did not hear about pharmacare for senior in BC! Comment from : trung Thieu

A few observations from someone about to implement this type of plan:br1 You need to plan how to replace the income and lower personal credits when your spouse passes br2 You can plan based on a 5 return but there is no guarantee you will attain itbr3 If you live past 90 your plan will not work Comment from : martik778

Great video Looks like I might have enough money unless I live past 90 Most of my income is in a RRIF Looks like this year we will have a recession so my nest egg is going to take a beating 4 of $400,000 is lot less than 4 of $700,00 And I understand at my age ,72 I have to take out more than 4 according to government rules? I wanted to retire with $1 million but life got in the way but with my mortgage and car both paid off ,plus 2 years of Covid do nothingness I was surprised how little I needed to live on Do I wish I had more money? Of course , but be realistic and budget and you should be OK Comment from : Doug

Like Caper Boy said most live pay check to pay check these days Thanks to Trudeau Comment from : Glenn Sankey

I dont normally comment on any videos but this is one of the best videos I have seen, I have probably watched this a dozen times I really appreciate all your content and watched the majority of them, so keep up the great work and thank you! Can you do a video on DC plans and when there is a mix of a dc pension and rrsps and how they can be converted and used in the most tax efficient manor Thanks! Comment from : Jason Hart

This is so realistic and very helpful for everyone Well done!!! Comment from : Barbara Robinson

Hi how do I find a planner in my area Niagara Falls Ontario? Comment from : S Smith

Like to make enough in investment to cover cost of living house all paid for absolutely no debt to anyone 🍻 Comment from : Rick B

Thanks for your videos Wondering in the “no go phase” of retirement how you plan for that expensive retirement/long term care facility you might have to move to The monthly fee for them can be very high Comment from : Mike Dupuis

This YouTuber is just a slimy salesman trying to get your $ Want to retire well? Buy real estate when you’re young Stock market is a fools game Comment from : J T

That same money can be in RRSP(100 taxable), non register accounts(50 capital gain tax) - if it’s in corporate account(return of capital Defer tax payable until initial capital depleted), TFSA (0 tax payable), permanent life insurance (policy loan @12, it may very from company to company or collateral loan from bank) Details on that how it works is outside of the scope for this threadbrbrTherefore, for example, when you see $100k in your account You will not get $100k, unless it’s in TFSAbrbrNote: Inflation have no boundary Comment from : Some Guy

You can retire with $12 millions today You can have approx $50k income/year and still have 2 or more continue to compound interest factor brEvery 6 to 7 years or so You can increase that original $50kbrOnce you understand the Canadian basic tax laws You’ll be surprise how tax efficient you could be Result, more money in your pockets Comment from : Some Guy

Very nicely explained Thanks Comment from : Ravinder Singh

I am 49 and i have 220k for retirement My goal Is to retire at 57 Comment from : Martin Frison

YOU WORK AND SLAVE FOR YOUR JOB AND THE CANADA GOVT GIVES YOU PENNIES AT RETIREMENT Comment from : Harold Hart

Long term care insurance will significantly cut back on the cost of the "no-go phase" and is one of the first actions to take when it comes time to think about estate preservation Comment from : Ryan Owens

I left and retired abroad, way cheaper & warmer Comment from : Ubon Rat

My Retirement Plan is monthly income equal to 35x my monthly expenses at age 55 I figure my monthly expenses will be consistent from age 50-70 35x should easily cover increase in inflation Comment from : Robocop

Great video I thought I would have needed a lot more! I was aiming for 4 million! Comment from : Daniel

Hi I want to know if I'm entitled to receive united states pension when I worked only 2 yrs ( 1972 to 1974) then back to Canada till now I'm 75 yrs old now and I don't receive CPP or US pension only OASup to nowcan I still apply ? If I am entitled to the benefits? PLs reply Thank You Comment from : Cathy Noriega

What is CPP and OAS? Comment from : Raheel Vlog

The 60-70 of your net income has always been confusing to me If I planned at 30 this would have been maybe 45k, at 40 60k and at 50 75k, which one do I pick? Comment from : Mike DB

Absolutely love these videos, especially this one He makes such complicated scary concepts so simple and easy to understand and apply Thank you! Comment from : Heather JSM

Hi, I make 50000 a year in Canada, I'm 63 in December 22, should I take my cpp now(800) and if I do how much tax will I have to pay, Planning to work another 4 years Thank you Comment from : MG

73 are worried about outliving their savings Yup I understand my plan and am quite conservative but inflation could still be a killer 22m invested but 60 years left of retirement So far the account grows more than I use but the worry about a multi year market correction is real Currently a 5-year GIC ladder is the insurance against a large drawn out correction Comment from : Ryan Newell

Why would anyone need to save any money for retirement? Money is free to borrow Everyone is borrowing cheap money and buying 400sq ft condos for $500K By the time they retire, the condos will be worth $3 million$ And so everyone thinks No one even thinks twice about the price they're paying for such small shoe boxes Comment from : Macky1101

If you don’t get off your ass and fight for your freedom, you will not have a retirement YOU WILL BE DEAD! Comment from : Bre Xit

more like how much will you need to beat inflation just to live paycheck to paycheck Comment from : adam almaouie

Great info!!! I really like how you broke it down, gave examples and then gave the questions to ask when you speak to a CFP about creating a plan And to include the estate planning component Comment from : Diana Phelan

If you include yourself and your grown kids it's basically a non starter lol Comment from : Mike Currie

Hi,brbrI just came across your YouTube channel Your videos are very clear and informative I was browsing through your videos but was unable to find anything obvious on RRSPs about how much to withdraw per year after retirement I understand that taxes for RRSPs have been deferred until the time of withdrawal, but what are the considerations of the amount of RRSP withdrawal and other income affecting taxes How do I gauge how much to withdraw? Thanks Comment from : C L

So many are afraid to retire thinking they will not have enough money For some people they will never have enough Some think they need millions whilst others are happy with 40,000 a year The important thing is when you have had enough with work, just retire, stop worrying live the time you have left Comment from : Ronald Harrison

I am trying very hard to live as cheap as possible as cheap as absolutely possible and also I’m aiming for a very cheap place to live and lastly I don’t want to live many more years Comment from : Sky

This is depressing 😫 Comment from : PurpleBirch

I would rather the 4 rule than the 70 income rule I have lived for awhile I have lived on minimum wage and I have had a high paying job I can tell you my needs didn't change This suggest that because I make 75k compared to 30K I some how need more money to retire It's not true brIn your example with the 4 and 1 million dollars it makes sense and for a couple reasons 1) I know what I spend and the 4 rule will give me 25 years of spending 2) Although not guaranteed I should expect 5 or more percent in interest You are saying 90 is the average age of death if you retire at 65 this is 25 years brbrGood information all the way around I think it's always good to cover mutiple instances and run the numbers different ways before determining you are able to retire brbrI find it funny that after you state it's based on how much you earn, your examples then go back to deciding how much money you NEED You didn't say, well this couple earned a joint 100K so they need 70k a year🤑 Comment from : iloveyouamberappel

This is assuming that Trudeau didn’t just ship all of cpp to Pfizer Comment from : Mike Jones

I need an advisor Comment from : Vanessa Guo R

ok people at age 50 figure out how much you spend per year average to live , bills etc, then go into into bank and figure out how much money ya got and take that and divide it by 20 then take off what yer total bills for 20 years adds up to , that will tell ya how much ya can spend every year (spend it on something you enjoy) to be broke at 70 , ya want be broke at 70 cause at 70 ya probably be going into a home soon then and you won't have to pay for it , let all the taxes ya paid in yer life pay for it , and use and enjoy the money ya saved yer whole life before that magic age of 70 where all bets are off once ya hit itbrbrya can't use 90 for a target age dude who makes it that far and who needs any money from 75 to 90 ? if ya do make it that far , yer sitting in a seniors home with drool coming down yer chin don't need any money there , spend it while ya can and go out broke , this aint a dress rehearsal Comment from : TheCaperfish

im 50 and have been retired for 3 years in 2003 I bought 000's of amazon stock the stock market isn't for everybody but if you research and do your homework like I did you will be fine Luck was there for me as well Be motivated and consistent with your future plans Great content and video Thumbs up!! Comment from : RUSH DIEHARD

Hi Adamhave been appreciating your videosvery helpful and informative I've looked at the 4 rule but doesn't account for principal reduction over time, and wondering if it's reasonable to utilize a simple amortization calculator to project incomejust the same as you would for a mortgage but instead of payment out, it's payment in For example, if I have $1M today invested at 5 with a 35 year amortization period (to age 90) I see a gross payment of $5046 monthly Is this a reasonable approach for estimation? Comment from : Dennis Cooper

Should this be based on pre-retirement "spending" vs "income"? If you put away 50 of your income for retirement savings before you retire, there should be no reason why you should aim for 60 to 70 of your pre-retirement "income" in retirement Make sense? Comment from : Urban Peasant

If you don't own your own place you are basically fucked unless you are a millionaire That's Canada Comment from : viperswhip

Can my children be successors to the TFSA, or just a spouse? Comment from : Parking Godess

Average CPP is around $550/mth, not $1,000 and are your numbers pre tax or net after tax? Comment from : FM59

Nice one! Keep up the great work! I really appreciate that your videos are targeted towards fellow Canadians :D Comment from : Barry

How would you plan for hyperinflation if that occurs during your retirement ? Comment from : George Osprey

Brother can you tell me that how to get a government job Comment from : Jazeb Zafar

Start stressing bout that and you won't live long enuf Comment from : ChristianX Z owner

Canada is now a communist state, who wants to retire there, thousands of people have fled the country Comment from : Juan Eduardo

Your videos are great!and your background is very calming Comment from : SRES Entertainment Sciences

Avg life expectancy is not 90 , so why use that number ? The average male lives till 80 and women 83 There is only a 35 chance the male will hit 90 I would have used 85 as something that is still longer than normal but much more possible Comment from : vroomgc

My guess was 60 cents and a moose Comment from : Brian Palmer

Hello, any idea how it works for cross border workers who live in Canada and working in US? How does the retirement scenario work for them in US or Canada or any other country The US employment takes deduction for social security and medicare every paycheck Comment from : Born2Shine Entertainment

Thank you for making this video I'm one of the people who has a questionable savings plan for retirement I am 41 years old though, so I still have time This video is definitely reassuring and gives me some direction, along with the other videos you have made on TFSA's While it is a scary thought, not knowing if you'll have enough money in retirement, I also feel that people underestimate their own resourcefulness, grit, critical thinking Of course, you don't want to be working in your retirement years, but if you take into account other current events like the debt and deficits of governments, I think we can all feel a little better knowing that we aren't exactly "alone" Comment from : TubeDeviant

I'm probably going to have a heart attack as I still think I'm not going to make itbrbrMarried and the wife messed up and hasn't filed her taxes for 7 years and has ZERO savings (Even after me begging her to get started)brTwo kids 13 and 9 - RESP's are sitting at $65,000 and still contributingbrbrI personally have roughly $480,000 in RRSP and still contributing (YahI've been saving since I have been 16Slowly at first and growing as I got raises and better jobs)brAlso have 40K in TFSA's and still contributing every monthbrbrIf I don't get laid off again, I'll have 15 years in a defined benefit pension plan (YahThe good one) - Should provide roughly $1200-$1300 a monthbrCPP + OAS + TFSA + RRSP + PensionbrbrHave roughly 50K left of the mortgage(It'll be paid off in about 6 years from now)brbrQuestion isDo I have enough to support my family? Comment from : Jason Kirkland

Hi, thank you for the great info! What retirement planning software would you recommend for Canadians? Comment from : Jacquie B

Gov seems like setting some new rules to withhold your CPP & OAS, either or both Until you money & assets fall back to certain limit before getting it back???? Comment from : Kwan Chi Tse

It's always about what you want to do when you are retired Comment from : Tim W

Excellent as usual! Comment from : David Wegner

Very helpful - thanks for the insights on retirement planning Comment from : Nadim Jamal

Good lesson Comment from : RAJ SHARMA

How do I handle my tax paying problem brI am 64 I have 28 million in rrsp common stock with dividends raging from $45 to $70,000 an year brI have 190,000 in rental income from my 9 homes with no mortgages I am stressed I do not have enough money Comment from : John Price

Thanks for sharing your experience on this channel Adam I had a question about the 65 yr old couple needing to take 1,300 per month from a 250k nest egg That is a 62 withdrawal rate which seems quite high given earlier comments about the 4 rule being relatively safe How do you account for sequence of returns risk when you prepare plans? Comment from : Craig Jansen

Good information What isn’t included is using the value in your home to fund retirement Either saving that to finance unexpected health needs at the end or to have a more comfortable life earlierbrbrI’m not sure why it isn’t more common to revere mortgage your house? Comment from : Chris Fehr

My wife and I found not having kids helps immensely Same with pets And instead of thinking of things you'd like to have or feel you deserve, think of why you DON'T Comment from : alan4sure

I am a 35 years old working professional, never thought about retirement till this video… Comment from : M

Stupid question considering some areas of Canada are cheap whereas other areas require lots of cashola Comment from : Warren Gauthier

I really appreciate you differentiating between the 3 phases of retirement needs I had a financial plan done not that long ago and they had told me I was in dire straights and had to contribute 100 of my take home money into retirement savings to ensure I wouldn't starve in retirement Needless to say, not very comforting I will reach out for a more common sense plan Your video content is fantastic Comment from : Danielle Robert

Percents are not about retiring in Canada but anywhere Canadian Dollars would be about how much to retire in Canada Comment from : Jan Pierzchala

don't forget about the GIS as well if you qualify remember its your income excluding was and supplement Comment from : rifling

I have $90000 enough caused I'm moving out to Philippines 2028 save cheap living Age 58 Comment from : Angelo Da conceicao

i do not even know who to talk to are you the one?brit has all became a game of who one choses to screw you you are still getting screwedbrgee Comment from : All junk

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