Saving to meet targets

To use this chart When to retire: Age 63 Age 65 Age 67

1. Pick a retirement age PER CENT OF CURRENT INCOME DESIRED
2. Pick the per cent of your current 50% 60% 70% 50% 60% 70% 50% 60% 70%
Working
income you would like in retirement income* PER CENT OF INCOME TO SAVE
3. Find the income nearest yours $12,451 0% 0% 0% 0% 0% 0% 0% 0% 0%
4. See what per cent of income to save 21,056 0 0 0 0 0 0 0 0 0
for your income and age targets
5. Prepare to save more if you start after
28,530 0 3 11 0 0 7 0 0 5
age 30, or you wish to retire sooner 35,782 3 10 15 0 7 10 0 5 8
Note: Savings rates are on top of Canada
Pension Plan deductions
42,803 7 12 16 5 8 11 3 6 9
Assumptions: Your income will remain in the same range 51,381 9 13 17 6 10 13 4 7 10
while you work. You save in a registered retirement
savings plan, and earn a 5% investment return. Price
61,270 11 15 19 8 11 14 6 9 12
inflation averages 2%. There are no changes to Canada 73,958 12 16 20 9 13 16 7 10 13
Pension Plan or Old Age Security/Guaranteed Income
Supplement. You buy a life annuity that pays 2 per cent 95,627 14 18 22 11 14 17 9 12 15
more each year in retirement. Note: The chart ignores
the RRSP limit, now only 18 per cent of gross income. 150,000 16 21 25 13 17 21 11 14 17
Source: C.D. Howe paper by David Dodge, Alexandre Laurin, Colin Busby * Average labour income for each tenth of population, ages 30 to 55

SOURCE: Bloomberg

SOURCE: Company reports, Bloomberg

SOURCE: Statistics Canada

Size:
3 column by 20 lines
File name:
bu-saving-to-meet-retirement-bl.eps
Designer:
XXXXXXX
Edition date:
day, XXXX, ‘07

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