Determine Your Sources of Retirement Income
To maintain your standard of living in retirement, you will need to replace roughly 70% of your annual gross employment income. Why only 70%? Because your expenses will generally be lower in retirement.
However, that rule does not always apply. You have to consider your employment earnings and retirement projects. Depending on your personal situation, you may need to save a higher or a lower percentage. If you have big plans, you'll need to save more!
Sources of retirement income include:
Income under public-sector pension plans from the Government of Canada (Old Age Security program) and the Gouvernement du Québec (Québec Pension Plan) provides basic protection in retirement. Therefore, it is not sufficient to maintain your standard of living. You must also count on other income, which can come from a
workplace pension plan and/or
personal savings.
Other useful information