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moneysense.ca, 12/05/05
Avoiding Retirement Mistakes
While retirement seems so far out in the future, like a majority of Canadians, we don’t have defined benefit plans to rely on. The Canada Pension Plan and Old Age Security may or may not be there for us. So, we are very keen on avoiding mistakes in saving for our retirement.
Money magazine has published a story on lessons learned from the mistakes of retirees. All of the lessons are obvious:
- Save as much as possible
- Spend less than you earn
- Find part-time work
- Make a retirement plan
The discipline and fortitude required to follow these lessons is the difficult part.
moneysense.ca, 12/05/05
A more interesting question is, how much is enough? I seem to remember C.D. Howe saying if you have less than $100K in your RRSP, all you have done is lost the Old Age Security portion of your CPP payments.
But, yes PLAN, PLAN, PLAN!
c8j
Big Canjun:
OAS is subject to clawback but it is eliminated when annual individual net income exceeds around $99,000. You need a RRSP of $2 million + (at 4% withdrawal rate) to manage that kind of annual income.