Do you have enough for retirement?

The first step is to estimate how much you will need each year in retirement. A common rule of thumb suggests aiming for about 70% to 80% of your current annual income to maintain your standard of living. However, this percentage can vary depending on your lifestyle, plans, and health condition. 

Ask yourself the right questions:

• At what age do you plan to retire?
• What will your monthly needs be (housing, food, leisure, healthcare, etc.)?
• Will you have debts to repay?
• Do you plan to travel or undertake new projects?

Your retirement income can come from several sources:

• Pension plans (such as the Québec Pension Plan and Old Age Security)
• Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs)
• Tax-Free Savings Accounts (TFSAs)
• Employer pension plans
• Personal investments (stocks, bonds, real estate, etc.)
• Part-time work or passive income

Add up these sources of income to estimate your available annual income in retirement.

A common rule of thumb is the 4% rule*: it suggests that you can withdraw 4% of your savings each year without depleting your capital. For example, if you have $1,000,000 invested, you could withdraw about $40,000 per year.

Another useful tool is the income multiplier:

• By age 60, you should ideally have saved 8 to 10 times your annual salary.
• By age 65, you should aim for 10 to 12 times your income.

A financial planner can help you refine your calculations and maximize your retirement income. They can also advise you on taxation, withdrawal optimization, and managing financial risks.