OCTOBER 5, 2021
By Sun Life Staff
Read time: 6 minutes
If you’re saving for retirement, it’s likely in a registered retirement savings plan (RRSP) or employee pension plan. But, the question is, what is the cost of retirement in Canada? And how much should you save to retire? Unfortunately there isn’t a simple answer.
There’s a debate in financial planning about what percentage of income Canadians need to save for a comfortable retirement. Recommendations run all the way from 40% up to 70% of what you earned before you left the workforce. But, is it useful to think about retirement planning in these terms? Maybe not.
Since everyone's situation is different, estimating a percentage isn't the best strategy. You need to look at:
- what retirement means for you, and
- what your expenses might be.
An advisor can help you figure out how much you need for retirement and how much you must save. In the meantime, start by answering these 10 questions to get a rough idea.