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Here's the cost of a typical middle-class retirement
Notes: (1) All amounts are in 2014 dollars, reflecting current purchasing power. Spending projections for subsequent years are adjusted for inflation, so real purchasing power would be unchanged. (See “What’s Your Magic Number” in the Summer 2013 issue for more.) (2) Typical middle-class income before tax. Assumes a paid-for home. (3) Typical annual amount for Canada Pension Plan and Old Age Security based on retiring at age 65, assuming a fairly long career at average salaries or better. (CPP and OAS are adjusted to pay more if deferred, and CPP is adjusted to pay less if started earlier.) We’ve assumed no employer pension, but this should be included here if you have one. (4) Approximate amount that can be withdrawn from initial nest egg if retiring at age 65, with only a small risk of outliving the money, based on a rough consensus of experts. (5) Required at start of retirement at age 65 (C/D). You’ll need more if you retire earlier, or less if you retire later.
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