< < Back
March 12, 2021

How much will you need for your retirement?

How much will you need for your retirement?

Whether you are 5, 10 or 15 years away from retirement, it isn’t always easy to determine just how much you will need to live happily ever after.


Beware of generalities

Many myths exist about how much you should be setting aside to live comfortably in your retirement. You have probably already heard a few different guidelines, like that you would need $1 million in your bank account, or that you will need 70% of your gross income to maintain your lifestyle throughout retirement.

One problem is that these rules do not consider inflation, which will have a direct impact on your purchasing power.  Your life expectancy will also affect the length of your retirement, as will your lifestyle, which will surely not be the same at 65 as at age 85.

To determine how much you will need for a comfortable retirement, you must first ask yourself the right questions.


What lifestyle will you have in retirement?

Have you ever thought about what you will do during your retirement?  Are you active or are you a home body?  Are you planning to travel the world or are you planning to do your favorite activities like gardening, sports or reading?  Would you like to swap your big house for a condo?  And by the way, will you have finished paying off your mortgage?  Defining your projects as accurately as possible will help you calculate the costs and help you start determining how much you will need.


How long will your retirement last?

Other parameters like the age at which you want to retire will also be a factor.  While some people decide to stop working early, others prefer to stay in the workforce to continue to earn an income or to pass on their knowledge.  This means you will need more savings if you stop working at age 55 than at age 70.  Now all this still has not considered life expectancy, estimated in Quebec at about 86 years for men and 89 years for women, according to Retraite Quebec; a factor that can weigh heavily in the balance.

Although this exercise is not always easy, estimating the length of your retirement will also help you assess your future financial needs.


Budget your retirement lifestyle

Once you retire, you may have less expenses related to your work (clothes, transportation, restaurants), and less taxes and contributions to pay, but you will certainly pay more for travel, entertainment, and health care as you age.

The best way to get the right pulse on your retirement lifestyle is to make a budget.  By comparing your current and retirement expenses, you will see if the estimated cost of living is realistic and if you are on the right track. The Saskatchewan government has provided this budgeting worksheet to help.


The secret:  planning for retirement

Between the estimated retirement age, life plans, health status and inflation, planning for the golden years presents many challenges.

Assessing your future needs and costs will help you determine how much you need to accumulate to live a comfortably in retirement, from a financial perspective. This will also allow you to determine if the different sources of income you can count on will be sufficient to financial all your future projects.

To put all the chances on your side, do not hesitate to call on an advisor from our team. They will be able to provide you with support through this new stage of life by tailoring your investment strategy to suit your financial goals.



Have questions? Call us at (514) 421-7090 ext. 344
Or fill out the form below and we'll contact you as soon as possible.


Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount on your investment in the fund will be returned to you. Past performance may not be repeated.

William Frenn and Manulife Securities Incorporated or Manulife (“Manulife Securities”) do not make any representation that the information in any linked site is accurate and will not accept any responsibility or liability for any inaccuracies in the information not maintained by them, such as linked sites. Any opinion or advice expressed in a linked site should not be construed as the opinion or advice of William Frenn or Manulife Securities. The information in this communication is subject to change without notice.

This publication is solely the work of William Frenn for the private information of his/her clients. Although the author is a Manulife Securities Advisor, he/she is not a financial analyst at Manulife Securities Incorporated (“Manulife Securities”). This is not an official publication of Manulife Securities. The views, opinions and recommendations are those of the author alone and they may not necessarily be those of Manulife Securities. This publication is not an offer to sell or a solicitation of an offer to buy any securities. This publication is not meant to provide legal, accounting or account advice. As each situation is different, you should seek advice based on your specific circumstances. Please call to arrange for an appointment. The information contained herein was obtained from sources believed to be reliable; however, no representation or warranty, express or implied, is made by the writer, Manulife Securities or any other person as to its accuracy, completeness or correctness.

Articles that might interest you

Stocks, bonds and mutual funds are offered through Manulife Wealth. Insurance products and services are offered through Manulife Wealth. Banking products and services are offered by referral arrangements through our related company Manulife Bank of Canada.


1405 Trans-Canada Suite 200
Dorval, Quebec, H9P 2V9


(514) 421-7090 ext. 344
1 (866) 713-8969