If you're like most Canadians, you're probably wondering how much you need to save to retire comfortably. The answer, unfortunately, is not as simple as a set dollar amount. It depends on a number of factors, including your age, lifestyle, and health.
If you're in your 20s or 30s, you may not need to save as much as someone who is in their 40s or 50s. This is because you have time on your side and can afford to take more risks with your investments. However, you should still start saving as early as possible to take advantage of compound interest.
As for how much you need to save, a good rule of thumb is to aim for 10-15% of your pre-tax income. If you can manage to save more than that, great! But don't feel like you need to break the bank in order to retire comfortably.
Of course, saving is only part of the equation. You also need to invest your money wisely. A diversified portfolio of stocks, bonds, and other investments will help you grow your nest egg while minimizing risk.
Finally, remember that retirement is not all about money. Your health and happiness are just as important. So, make sure to factor in things like travel, hobbies, and spending time with loved ones when planning for retirement.
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Are pension plans expensive?
Pensions in Canada are among the lowest cost retirement options available. A recent study by the C.D. Howe Institute found that the median cost of a pension plan was just 1.07% of assets.