Situation and Needs Estimate

Retirement is considered a disinvestment. Being overly optimistic or pessimistic does not help you assess your long-term financial security. To analyze projected retirement over 30 years, it is recommended to use the 3%7 net rate of return.

Also, it is a good idea to conduct several simulations to assess different costs of living and consider the impact that various projects could have on long-tern financial security. Statistics Canada’s historical data reveal that retirees spend on average 67% of what they spent during their years on the labour market. The majority reduced its consumption by choice (53%) rather than by lack of resources (33%).8

7 Net of portfolio fees and inflation.
8 Source: McKinsey & Company: “Building on Canada’s Strong Retirement Readiness” 2014.

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