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Middle Class with Struggle the Most in Retirement

Posted on January 15, 2008 at 1:52 pm 
Filed Under Financial Planning, Investment Planning, Retirement Planning

Canadians with a household income of less then the $58,000 median income level will replace approximately 89% of their income during retirement through Government programming. This is not necessarily the case for the middle class Canadian family.

According to Sherry Cooper, a Global Economic Strategist with BMO, “The transition will be relatively painless for low-income earners due to the health care system and the implicit value of social benefits in general, including mandatory retirement.” Further to that, Cooper goes on to say “those earning six-figure salaries can only expect to see about 30% replacement.”

 Your Take-Away: It is hard to imagine that those who make less money throughout their lifetime will find it easier to transition from their income earning years to their retirement years.  The reality however is that the more we make, the more we tend to spend.  At least that’s what we’ve seen with our clients.  In my opinion, there is no better reason to start seriously looking and planning for your retirement today, despite your current age. 

If you don’t know how much you will earn annually during your retirement years, how will you be sure that your transition will be as smooth as those earning less then $58,000?

Until next time, have a Terrific Tuesday!

Chris

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One Response to “Middle Class with Struggle the Most in Retirement”

  1. Connecting News, Commentaries and Blogs at NineReports.com on February 5th, 2008 1:46 pm

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