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The magic number for retirement savings is $756,000
February 8, 2018
11:14 am
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The magic number for retirement savings is $756,000, according to poll of Canadians

While that is the average amount individual Canadians believe they’ll need to amass, up to 90 per cent don’t have a formal plan on how to get there

http://business.financialpost......-canadians

February 8, 2018
11:56 am
Bill
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Hard to take seriously anything said by a populace that claims it knows what its number is but 90% have zero plan to make it happen. Real plan: Keep electing parties that give us guaranteed annual income or other programs to "redistribute" from those who have money (because we all know that anyone who has more money than we do must have gotten it due to systemic "privilege") is the new Canadian way.

February 8, 2018
12:02 pm
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February 8, 2018
12:13 pm
Save2Retire@55
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I don't really believe this either. How many did they survey? What was their age? In which provinces? What was their education? Job? Throwing out random numbers is not helping anybody.

February 8, 2018
12:26 pm
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It is what it is -

About the 2018 Retirement Savings Poll:

From January 12th to January 14th 2018 an online survey was conducted among 1,523 randomly selected Canadian adults who are Angus Reid Forum panellists. The margin of error—which measures sampling variability—is +/- 2.5%, 19 times out of 20.

http://cibc.mediaroom.com/2018.....-CIBC-poll

February 8, 2018
1:02 pm
Joint
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The kind of polls seem self serving to the mutual fund industry . they ask people who have no saving how much saving they would needed . how would they know that ?

I do believe that many have saving nothing or not enough for retirement but all so think in one form or an other income will be redistributed to them ( through cpp , oas , welfare etc)

February 8, 2018
2:31 pm
Save2Retire@55
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Joint said
they ask people who have no saving how much saving they would needed . how would they know that ?   

Exactly! They can't be good at estimating but not at saving anything.

February 8, 2018
2:44 pm
Loonie
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I think they could easily come up with an estimate without having been able to save the money.
The estimate is likely informed by media and blurbs from banks telling them they have to save an amount which they know they are not doing and indeed may not be able to do, which may weigh heavily on their minds.

February 8, 2018
5:42 pm
Norman1
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I'm not sure the estimates are even informed.

The spread is quite large: "Millennials (aged 18-34) believe they'll need the most at about $917,000, compared to $842,000 for Generation X (aged 35-54), and $518,000 for Boomers aged 55+"

Current annuity rates are about $230,000 at age 65 for $1,000/month, indexed by 2%.

That implies that Millenials believe they need to generate about $4,000/month on their own on top of CPP and OAS, Generation X'ers believe they need an extra $3,700/month, and the Boomers believe they need an extra $2,300/month.

February 8, 2018
6:39 pm
Wayno
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The comments in this topic are focused on the estimates/numbers in the survey rather than understanding that each individual needs to get planning and start using their own numbers.

... Each person will have different numbers.

.. Here is the last paragraph in the article..............

“Assessing if this is enough money is the equivalent of answering the question ‘Am I going to be OK?’ without defining what OK looks like. The real message buried in these statistics is that people need to get more engaged in planning what they want their future to look like.

February 8, 2018
9:35 pm
Loonie
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Norman1 said
I'm not sure the estimates are even informed.

The spread is quite large: "Millennials (aged 18-34) believe they'll need the most at about $917,000, compared to $842,000 for Generation X (aged 35-54), and $518,000 for Boomers aged 55+"

Current annuity rates are about $230,000 at age 65 for $1,000/month, indexed by 2%.

That implies that Millenials believe they need to generate about $4,000/month on their own on top of CPP and OAS, Generation X'ers believe they need an extra $3,700/month, and the Boomers believe they need an extra $2,300/month.  

The millenials will likely be thinking that by the time they get to retirement, it will cost a lot more than it is going to cost their parents who are retiring soon. I think that's a reasonable assumption. The details may be off, but I thought the graduation in estimates according to age made sense.

February 12, 2018
6:25 am
Save2Retire@55
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Here is a new article from Global News. It looks great and very well written.

https://globalnews.ca/news/3981582/how-much-to-save-for-retirement-canada/

February 12, 2018
2:44 pm
Bill
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Lots of Canadians get their paycheque from a municipal, regional, provincial or federal government. I think it's roughly about 25% of all workers are in the public sector. That means, assuming 2 adults in a home, a good % of households don't have to save hardly anything for retirement, they can blow all their dough pretty much, once a 30-year public sector job pension is taken into account. These articles rarely mention a lot of folks don't really need the services of financial advisers or the investment industry in general.

February 12, 2018
7:55 pm
Norman1
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Loonie said

The millenials will likely be thinking that by the time they get to retirement, it will cost a lot more than it is going to cost their parents who are retiring soon. I think that's a reasonable assumption. The details may be off, but I thought the graduation in estimates according to age made sense.  

The survey participants are adjusting for inflation. That is clever. sf-smile

In that case, the $756,000 average is meaningless. It is an unadjusted average of different dollars from 2028 all the way out to as far as 2058 and even beyond.

February 13, 2018
5:04 pm
musicalmaestro
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Well, a number is just that - a number. For those who find this website/forum and get to this post, you might check out: canada.esplanner.com
FWIW I feel this perhaps the coolest free Financial Planner available online if you are willing to put in the numbers and look at the data.

February 14, 2018
6:53 pm
Doug
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Bill said
Hard to take seriously anything said by a populace that claims it knows what its number is but 90% have zero plan to make it happen. Real plan: Keep electing parties that give us guaranteed annual income or other programs to "redistribute" from those who have money (because we all know that anyone who has more money than we do must have gotten it due to systemic "privilege") is the new Canadian way.  

Bill, you've hit on a "sweet spot" for me. I would love to see a political party have the guts (sorry, Justin, you don't) to implement universal basic income to replace all forms of social assistance in this Uber-led "gig" economy. Instead of just reacting and increasing minimum wage, which causes employers to cut back benefits or hours for employees, provide a "top up" so people don't have to worry about being evicted or starving. 🙁

This would encourage more entrepreneurship and it would likely pay for itself through the simultaneous sacking of 1000s of high paid bureaucratic public servants in 1000s in hundreds of welfare offices across the country. When you factor in reduced ER and hospital stay costs, not to mention lower incarceration rates, this would be a huge net gain for the public treasury. sf-cool

#micdrop

Millennials, and Generation Xers, stand to be huge beneficiaries of the largest, or second largest, transfer of wealth that the Boomers are starting to inherit now from the ... what were the Boomers' parents generation called? 😉

I think I probably only "need" about $250,000, provided it maintains its purchasing power, when I factor in what I stand to earn from all of my pensions and so forth. I'm single, no kids and, thus, no beneficiaries.

Cheers,
Doug

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