Good news: Your retirement savings target is lower than it was five years ago
The retirement savings target for Canadians is currently lower than it was five years ago. This change is influenced by factors such as the average retirement period and individual financial circumstances. The current target is estimated at 6.4 times final pay, compared to higher targets in previous years.
- ▪The average retirement period has changed, shrinking as Canadians retire later.
- ▪The savings target for retirement is influenced by income level, marital status, and other financial obligations.
- ▪Currently, the savings target is 6.4 times final pay, lower than the targets from five years ago.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountIn my last chart, I showed that the average retirement period – the time from when we retire until we die – has changed over the past 35 years. It grew steadily until 2012 and then started shrinking as Canadians retired later. This week we’ll explore how the retirement period affects our savings target – the amount we should be saving for retirement. This is relevant to Canadians who rely on their own savings to fund their retirement. I will express the savings target as a multiple of one’s final pay, before tax. This multiple varies since it depends on an individual’s income level, marital status and any mortgage payments or child-raising costs.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
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