How Much Do You Need To Retire In Canada? It Might Be Less Than You Think

[@Tsunaniis-j5l]

Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million.

[@ItsaJourney4007]

This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.

[@DreamweaverShade-h9p]

@@devereauxjnr I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same.

[@DreamweaverShade-h9p]

@@devereauxjnr I might have heard this name somewhere, but can't really recall. I'll be following her up. Thank you. Do you know if she manages family fund too?

[@mrofnocnon]

Trust me your parents did exceptionally well compared to the majority of us, no matter how hard we worked. Not everyone can have a government job.

[@howardjamespatterson4119]

I was stressed the first 2 years of retirement , started reducing my stress by volunteering locally after 6 months . Found out how fortunate I was . Learned to spurn debt early in life ( sometimes debt is useful to improve equity , purchase a home , transportation to improve employment ). Been retired over 10 years , took advice from real people that had been retired for a while and managed their own affairs . I enjoy the quiet life , travel at every opportunity . Spend less than you make , make a habit of saving , and enjoy yourself frugally between splurges .

[@keith2515]

COVID ocked up in your little apartment saves money...but TERRIBLE for physical and mental health! NOT retiring in 'Canada

[@cindys7616]

Thank you for the videos. Great information for Canadians. Nice to get Canadian information instead of USA information that’s not relevant.

[@rosegirl9874]

Yay, a Canadian financial KZbin channel! Thanks for doing this!

[@rosegirl9874]

Can you talk about spousal rrsp?🙂

[@davoshaunessy7481]

Once I hear the K werd I usually just shut it offffff

[@mavrick6499]

I applaud you for attempting to explain this complicated topic, considering how many variables there are. Of all of our friends and family we are the only ones - honestly, because we asked - who know what they spend every month in each category, who re-balance or take a good look at their portfolio twice a year, who can explain how inflation affects their retirement, and who have a decent idea of what taxes they have already paid and what more they will have to pay. Having someone who is able to explain retirement funding, specifically for Canadians, is so necessary. We have subscribed.

[@ms.carlson3904]

You can plan your life so you live very cheaply. Ride a bike if you can. Cook all your meals - eat a lot of beans as they are extremely healthy and very cheap and filling - oatmeal and barley is not bad either - clothing can be all bought at garage sales or hand me downs from friends, and thrift shops. Furniture is free as people leave castaways on the street and you can get all second hand. Entertainment is the internet and Netflix and books that are free. You can draw pictures of things you like. Meditate. It is fun to live cheap and not have to work. Too bad though if you have an expensive hobby like horse back riding or collecting cars.

[@ztekz]

In other words “live like a hobo”!

[@spud2727]

In other words vote liberal and this will be a reality(already is) thanks Justine!!

[@michaela3032]

@@ztekz If living like a hobo means riding your bike and grocery shopping/cooking your own meals with healthy ingredient then YES, reward your body with this lifestyle. Past two yrs I put more mileage on eBike than new truck. Cook at home instead of dining out. luv it.

[@TheBoomtown4]

@@spud2727 you probably don’t have to worry about retirement because you’re too “stupid” to put away money.

[@spud2727]

@@TheBoomtown4 justin is that you??

[@blomshell]

This is amazing. Just what I was looking for. Valuable content delivered in a friendly, Canadian way. Thank you.

[@ParallelWealth]

Thanks Laura!

[@ridiculous_gaming]

$40,000 a year in Canada, in the province of BC, is simply inconceivable. Living in the country is getting far too expensive.

[@mrofnocnon]

So many are afraid to retire thinking they will not have enough money. For some people they will never have enough. Some think they need millions whilst others are happy with 40,000 a year. The important thing is when you have had enough with work, just retire, stop worrying live the time you have left.

[@dianaphelan1961]

Great info!!! I really like how you broke it down, gave examples and then gave the questions to ask when you speak to a CFP about creating a plan. And to include the estate planning component.

[@21ZacDUDE]

Currently 25 years old. Thanks for the video! Very informative.

[@Inquisitive9]

If you are watching this at age 25, you are well ahead of millions of people.

[@ronwiebe4816]

Downsizing real estate is also another safety valve many people may have - eg. at 70 yrs old sell your $1M house and buy a $500k condo and add 500k to income bucket. These are great videos and Im sure you are putting some minds at ease. I will bring my accounts over to you guys soon with my general plan (i will retire Sept 2027). keep the videos coming - can you do one on types of safe income plans (MIC, Bond Funds, Dividend funds etc) that you use for accounts that need 5-7%

[@danirobi10]

I really appreciate you differentiating between the 3 phases of retirement needs. I had a financial plan done not that long ago and they had told me I was in dire straights and had to contribute 100% of my take home money into retirement savings to ensure I wouldn't starve in retirement. Needless to say, not very comforting. I will reach out for a more common sense plan. Your video content is fantastic.

[@seanwilliams8833]

I'm one of those lucky Canadians who has a defined benefit pension plan. I will retire next year at 54 with 31 years of service which provides for 62% pension. Still, I wish this type of information was available to me 30 years ago. I will make sure my kids are aware of the need to save for their retirement.

[@davidgiles5030]

Me too. Retired at 49 with 30 years. I have 66% with COLA. I've been retired just over 20 years and live very comfortably. My daughters are both treachers in Ontario. They will have an even better pension. I made sure they were aware of that when choosing a career.

[@-Ordinary-Average-Guy]

@@davidgiles5030 Can never go wrong working for the public sector. Although for taxpayers it's unsustainable to keep giving into public sector union demands. This is one reason why Ontario is broke.

[@scottclarke8522]

Retiring at 47 with no defined pension, all self directed investing using low cost index funds. :)

[@bekesir12]

@@davidgiles5030 you really left a good world behind. It's like a wake of environmental destruction and it's your fault.

[@weskentner8037]

@@davidgiles5030 I'm glad were giving government workers pensions for doing terrible overpriced sub par work. Pensions at the expense of the responsible I guess

[@manyhatershere1721]

most people that doesn't have any retirement savings don't save because they don't have any spare income to put away. cost of living is high in this country and wages are low. the examples given show employment income like 80k, 160k... but most people are working with income more like 50k.

[@-Ordinary-Average-Guy]

I agree. There's a lot of Canadians who are retired that live hand to mouth. They live on very tight budgets. Not all of us can work for the government and be blessed with a taxpayer funded pension.

[@MrBaza70]

Nice one! Keep up the great work! I really appreciate that your videos are targeted towards fellow Canadians. :D

[@xbman1]

That same money can be in RRSP(100% taxable), non register accounts(50% capital gain tax) - if it’s in corporate account(return of capital. Defer tax payable until initial capital depleted), TFSA (0% tax payable), permanent life insurance (policy loan @12%, it may very from company to company or collateral loan from bank). Details on that how it works is outside of the scope for this thread. Therefore, for example, when you see $100k in your account. You will not get $100k, unless it’s in TFSA. Note: Inflation have no boundary.

[@TubeDeviant]

Thank you for making this video. I'm one of the people who has a questionable savings plan for retirement. I am 41 years old though, so I still have time. This video is definitely reassuring and gives me some direction, along with the other videos you have made on TFSA's.. While it is a scary thought, not knowing if you'll have enough money in retirement, I also feel that people underestimate their own resourcefulness, grit, critical thinking. Of course, you don't want to be working in your retirement years, but if you take into account other current events like the debt and deficits of governments, I think we can all feel a little better knowing that we aren't exactly "alone"..

[@abouttime5000]

Stay in a one room house where the bedroom is in the kitchen to save on heating costs. Eat no name pasta and regular ground beef. That’s the reality.

[@Pacman398]

It wont be my reality. I have planned for retirement my whole working life. People who simply live for today and forget about planning for tomorrow are the ones eating the hamburger helper.

[@traceygiles3972]

My mom and dad planned for and looked forward to retirement. Dad was going to retire at 60...but mom passed away at age 57. Dad then remarried a witch who wanted a large house...so there went my inheritance. He then had to work after the age of 60...he got sick and died...never to enjoy retirement.

[@user-od9iz9cv1w]

Great advice. There are very few planners who create a plan this detailed. I have one which is even more detailed that I did myself. Trust me it is worth it's weight in gold. Once you have a full financial plan, your worries evaporate. Call this guy and get one done before you retire. It will make the retirement decision easy if you have been preparing. Or it will scare you to death and shock you into taking your future seriously.

[@yarabamba]

I don't see anybody addressing that you might have a mortgage after retirement. This is the big elephant in the room/

[@JJ-ps9xe]

You are screwed brother.

[@meilingedm]

you probably should have that paid off in your 40's

[@yarabamba]

@@meilingedm I will be done at the age of 75, I had to save money for several years before buying a house.

[@JackdawWatcher]

Wow I didn’t realize banks in Canada will give you a mortgage for that long. In my home country you have to be able to pay your mortgage off by 60 to qualify for it.

[@meilingedm]

@@yarabamba the older you are depending on your income streams the easier it is to get more money..... there is ways to navigate, but most of it is to bud massive passive income stream and live off the dividends.

[@Laddie999]

This is really great! So happy to have a HUMAN advisors and not sales person (aka investment advisors). My god, the 1% they take from the portfolio for 45 minutes once a year is criminal!

[@ParallelWealth]

Thanks! If there is no planning it can be expensive. If you are paying up to 1% and getting planning advice its worth it. There is also value in having someone to lean on when times get tough. Vanguard did a great study on this.

[@robrider838]

When you are retired you should have no mortgage (mine is $30k/year) and you also won't be saving for retirement anymore (max saving for RRSP and TFSA is $33k/year that you'll no longer be "spending"). You'll also have way more time to shop around for bargains, etc. You will need way less than 60% - 70% of your current income.

[@ParallelWealth]

Definitely some do, but average we see from over a few hundred retirees is 60-70%. Traveling adds up quickly!

[@panda55c]

Totally agreed!! If you’ve been working from 25 to 65, should your house be paid off by now? No more savings for retirement, take those 2 factors out, then CPP, Old Age + some extra income (from your savings/investments buckets) is good enough to enjoy your basic retirement life. If you have more $$ then you can think of traveling, domestically or internationally, depending on your financial situation … Speaking from someone who used to worry so much before and now been happily retired for 3 years … LOL

[@charlie-ot5ug]

Retired 2019 at age 58. At the go go phase but I havent been able to travel since March 2020.

[@brentbyggdin3627]

This is a Great site. Insightful expertise delivered with clarity and simplicity. The tip on ensuring the TFSA recipient is set up as a successor/holder vs a beneficiary is Hugely important in the event the TFSA owner dies prior to drawdown. Thank You. I am now another appreciative subscriber.

[@ParallelWealth]

Thanks Brent!

[@sresentertainmentsciences3340]

Your videos are great!....and your background is very calming

[@artisforusall]

This is so realistic and very helpful for everyone. Well done!!!

[@andrewlander3299]

Also consider, moving abroad to a cheaper country might reduce your needs of income. Living in the Philippines i.e. and to keep your comparable lifestyle is 3:1. To live on 4.500 in Canada is equivalent to live in the Philippines on $1,500

[@robertt9342]

People from some European countries mover to Canada to take advantage of the same thing.

[@StanTheMan-us3tp]

I retired at 48 years old. No debt, that should be the goal. Change your lifestyle of ovespending, Clear your debt and you can retire.

[@scottclarke8522]

Nice. I'm 47 and will be next month. Agree 100%

[@Canaca1]

Much easier if you don't have kids, we have 3... No luck here!

[@adamhero459]

Unfortunately with the drastic increases in house and rent prices over the last few decades, that will be nearly impossible for people who are under30 today unless they make well above the average for where they live. And that is assuming no kids.

[@scottclarke8522]

@@Canaca1 I got news for you, I got 3 as well. People in our culture think kids are expensive. Its all in how you set your life up. Yeah - shipping them off to day care is expensive.

[@tedpark6814]

Had no debt since about that age too - that makes things much easier. I have my own business and I really like what I do, so why not keep going? I have the flexibility to take time off time when I want, so that that's good too. We're all working from home now, which is great since I can just get out of bed and go to my office but bad because the snacks are all stored here so I'm tempted to scarf them down.

[@ie6370]

Very much enjoyed this video...planning on retiring in 3.5-4 years. Every little tidbit of info you provide is very useful and helpful.

[@ParallelWealth]

Thank you. Glad it's helping.

[@Lioness_UTV]

This was incredibly helpful, especially for those of us who are not in such a healthy position. Thank you.

[@canadianjuhli]

Thank you for putting together this information in such a clear and comprehensive way. I look forward to watching your other content too. Keep up the amazing info!!

[@ParallelWealth]

Thanks for the kind words. Appreciate it and thanks for watching.

[@stephenbibby8650]

I’m from the Uk so things are slightly different here . However the broad detail of your advice I have found very useful. Thank you 🙏

[@ParallelWealth]

Thanks for watching. Yes there will be a little difference in some topics, but overall most of the content will apply.

[@crazycatz7]

Absolutely love these videos, especially this one. He makes such complicated scary concepts so simple and easy to understand and apply. Thank you!

[@ParallelWealth]

Thanks Heather!

[@thedailystruggles7539]

Pay off my house and retire around 55 or younger. Go to philippines . I'm 28 btw

[@may-jeanpowers7199]

Go for it! Good plan. 😀

[@cornstar1253]

No thanks

[@jjlad5037]

The secret to a successful retirement is don't get married. If you do get married, then don't get divorced.

[@yukouchida9344]

Divorce costs so much!

[@jjlad5037]

@@yukouchida9344 ...Usually 50%..plus residuals forever.

[@cavelleardiel]

And don't live with someone.

[@kimberlini347]

@@yukouchida9344 Divorce costs so much because it's worth it!!!

[@yukouchida9344]

@@kimberlini347 I think when you want to divorce, it doesn’t matter how much it will cost you.

[@jeromeleoterry]

I've done OK, but I still feel behind. 43, paid for house, no debt, 6 months expenses in emergency fund, 135k in RRSP, 6 figure salary, single. Now's time to get serious and start building up the RRSP and post-tax savings. If all goes well, should be able to retire comfortably. Assuming good health and able to maintain working in the tech sector until retirement.

[@kunallaungani1703]

Thank sounds pretty solid to me. What comes after this?

[@jeromeleoterry]

@@kunallaungani1703 max out my retirement accounts next, and pile up cash for a replacement vehicle in a few years. After that, likely start investing into a taxable account

[@mrofnocnon]

You certainly have done ok. With those numbers at your age, stop worrying and enjoy life and look after your health, without that you have nothing. I manage on much less.

[@adventureswithdougie]

Well spoken and great presentation. Thank you for your time. 👍👍👍

[@catherineellen928]

Great content on all your videos and finally Canadian! Subscribed.

[@ParallelWealth]

Many thanks!!

[@Lifestartsatretirement]

This is THE question everyone is asking. Great Advice!! Thanks Adam!!

[@lovewasabipeas]

I am a 35 years old working professional, never thought about retirement till this video…

[@chrisfournier6144]

You’re in the perfect place to secure a happy (financially anyways) retirement. Do it!

[@mrofnocnon]

At 35 enjoy life just put a little bit away if you can.

[@Leftatalbuquerque]

Do a show about how kids today will never be able to afford their own home, much less an apartment. How is any young person today EVER going to be able to move to a city where they can find their tribe and community and HAVE A LIFE? When I first moved to TO you could still find a bachelor for $350+, and it was doable. It was tight, but a young man could do it and still have money for a pizza and new jeans. And, you could BE where people like you existed, especially if you were from a small place in remote Northern Ontario. How is any kid supposed to do it NOW??

[@ParallelWealth]

It's a great point. I had a client yesterday say to me that she was told this as a teenager in 1981 when interest rates were 21% on a mortgage - but here we are. I'm generally a positive person and believe my 4 kids will find a way....or I'll have a big basement...🤣🤣

[@steve8803]

@Leftatalbuquerque If you can't afford to live in a certain area, don't move there. There is life outside the "center of the universe"!

[@neolithic3]

@@steve8803 Not as many jobs though. I'd love to get out of Vancouver but where should I go?

[@steve8803]

@@neolithic3 Jobs are no good if they don't pay enough for you to make ends meet in a certain area. As for where to go, depends what you're skilled in.

[@steve8803]

@Robert G Burke yet there you are with a roof over your head, food in your belly and an internet connection. First world poor still makes you richer than the majority of the world!

[@AlwaysHappy494]

Fantastic!!! Thank you for all your helpful videos. A suscriber.

[@ParallelWealth]

Thanks for the sub!

[@dchen1010]

Great video. I thought I would have needed a lot more! I was aiming for 4 million!

[@urbanpeasant1238]

Should this be based on pre-retirement "spending" vs. "income"? If you put away 50% of your income for retirement savings before you retire, there should be no reason why you should aim for 60 to 70% of your pre-retirement "income" in retirement. Make sense?

[@ParallelWealth]

Everybody has a different retirement need. 60-70% is 'normal, but some people veer off that drastically!

[@rifling7917]

don't forget about the GIS as well if you qualify. remember its your income excluding was and supplement.

[@Ram78979]

Your information on retirement is a great eye opener! Thank you.

[@ParallelWealth]

Thanks for watching!

[@enjoythedreamlife5658]

It is better to work with a Financial Planner like yourself, than doing it yourself. The fact, is and Im only talking about a good Financial Planner, will do better for you than doing it yourself. Why? Because do it yourselfers only focus on the bottom line. What is the return and that is the wrong way to look at it. like what is more important Mortgage Interest Rate OR Mortgage Interest PAID

[@jpkool5722]

Speaking to 90 year old man today. He told me the retirement home they were checking into cost $6200/month. So much for not spending as much in the no-go years. You need far more money if you live beyond 85 than at 65. Why would you think you need less money as you age?

[@ParallelWealth]

JP, if you move to a care facility you would sell your home...so thats the funding. For those that don't own a home, then that needs to be a part of the plan. Keep in mind that care homes are often income and asset based.

[@jlys5037]

@@ParallelWealth yes, no one is left "in the street". Many variables, such as level of care/supervision and amenities affect the rent in these facilities.

[@TheCaperfish]

@@ParallelWealth my plan is to have no money or assets left at 70 spend it all , travel , enjoy life , they will put you in a home for free , get something back for working your whole life and paying a life of high taxes ,

[@mrofnocnon]

The message is stay at home as long as you possibly can, look after your health.

[@lp9092]

@@TheCaperfish yeah, that’s sad but so true. The system is designed to reward the grasshopper, and suck away all the ant’s hard work.

[@vinberube136]

My goodness gracious, nice job on the background, lighting and camera.

[@ParallelWealth]

Thanks Vin - as a financial planner is took some time to work this out. Not exactly my strength!

[@nadimjamal1644]

Very helpful - thanks for the insights on retirement planning.

[@mikedennington8856]

Buy good dividend stocks in the TFSA. Have no debts, no mortgage, no car loan, no credit card debts. Then you have electric, internet, phone, gas, natural gas, house taxes and insurance, car insurance, food, dental, eye glasses. Thats it for me.

[@radosuites7058]

You should switch the column headings - the nominal value should be the constant $69k, and the ‘real’ dollars should be the adjusted ones.

[@ParallelWealth]

🤷🏻‍♂️🤷🏻‍♂️

[@timsretirementjourney8323]

I retired at 67 years old 2 1/2 years ago still quite deep in debt (spousal support will do that to a guy) but I was fortunate to have worked for a company for 40 years that had a pension plan up until about 12 years ago when most companies put and end to those. So far life's alright. We moved to Vancouver last year about this time to share a 2 bedroom apartment with my step son, and because Vancouver has an amazing transit system we didn't need a car anymore. Either this winter or next my wife and I will start spending about 6 of the cooler month in our new condo in the Philippines, and 6 back in Canada during the better weather. When my wife retires completely too, chances are we'll live full time in the Philippines, and actually be able to live pretty well on my pensions alone. Living abroad isn't for everybody but with a lot of people in both Canada and the US retiring without enough saved these days it's becoming a more and more popular option.

[@ItsmeCote]

Great choice. Phillipines is my retiring place IF China doesn't put their dirty hands on this country by then.. I'm 35 and plan to retire at 55.

[@froilanbacelonia9467]

Good job

[@-Ordinary-Average-Guy]

My Father in law did something similar. He bought a little piece of property in Puerto Vallarta. And built a small house on it. He didn't have much income to begin with. Yet he got to enjoy his last few years with his new wife and a beach only 5 minutes away. Canada seems to be one of the most expensive countries in the world to live now.

[@timsretirementjourney8323]

@@-Ordinary-Average-Guy you're absolutely right. Canada can be a pretty expensive place to live. There are certain places where a person could still buy a nice house or rent a good apartment at very affordable prices, but my wife being from the Philippines really wants us to retire over there and I think it's worth a try. 😎

[@timsretirementjourney8323]

@@mrlucas3013 for some people that works very well. I can only wish I had invested in that 5 or 6 years ago. ;)

[@wbuffett1]

Here is the secret if you haven't saved enough move to Latin America with good health care. You can live great on $1500 to $2000 in most Latin American countries

[@neolithic3]

how do you access the health care though?

[@wbuffett1]

@@neolithic3 its cheaper and high quality

[@Lineman052]

@@wbuffett1 where does one find out how to do this? Our country is a dumpster fire.

[@dereksbooks]

Does that include Venezuela? 😏

[@wbuffett1]

@@dereksbooks si Derek. Pendejo

[@yourbestfred_YEG]

Really happy I found your channel. Great job with these videos!

[@ParallelWealth]

Thank you. Always appreciate the positive feedback.

[@rjhartre]

I dont normally comment on any videos but this is one of the best videos I have seen, I have probably watched this a dozen times. I really appreciate all your content and watched the majority of them, so keep up the great work and thank you! Can you do a video on DC plans and when there is a mix of a dc pension and rrsps and how they can be converted and used in the most tax efficient manor. Thanks!

[@timw4369]

It's always about what you want to do when you are retired.

[@ParallelWealth]

Agreed Tim!

[@sean367]

Retired Canadians are now forced to return to the work force.Thanks Justin

[@Seektruth-59]

Average CPP is around $550/mth, not $1,000 and are your numbers pre tax or net after tax?

[@ParallelWealth]

NET.

[@mrofnocnon]

Agreed I know of no one who gets full CPP.

[@Bondanalloy]

Tfsaaaaa. So flexible and free, especially if you want to leave anything to children as it's not taxed like pension assets in an rrsp

[@SeanONeill13]

But it is, a) limited in how much you can contrib, b) money used to fund this, is taxed at a higher rate. Surprised you do not get that simple fact

[@Bondanalloy]

@@SeanONeill13 explain how it's taxed at a higher rate please. It's funded with after tax dollars if that's what you mean but thereafter all growth and distributions received after free and clear. but that has no bearing on its value if you understand tax rates and brackets. Even comparing the tax break you get by deferring via RRSP, you can't beat its ultimate value, and since I'm younger than 40 yrs old I have a long horizon to build the assets in it.

[@Bondanalloy]

@@David.Bergeron yeah! even so, the flexibility to me outweighs even the savings from tax for high income individuals. i love both programs but tfsa is just so much better overall for most people.

[@Monte-lw4in]

Great video, awesome topic. Thank you.

[@oakmanzl1699]

If you have a colleague in the GTA/Southern Ontario area I would like to contact them. Thank you and I appreciate the time and effort you are giving to help people. Thank you.

[@ParallelWealth]

I don't, we are based in BC. That said, we work with people right across Canada. We have MANY clients in Ontario/GTA.

[@brucegarrod8674]

We worked with Adam and his team. The fact we were in eastern Canada and they were in BC, was irrelevant. In fact the time difference worked well; we found we were getting quick answers in the evenings.

[@RyanPatrickOwens]

Long term care insurance will significantly cut back on the cost of the "no-go phase" and is one of the first actions to take when it comes time to think about estate preservation.

[@ParallelWealth]

Somewhat agree. LTC insurance has been out for years and I have been licensed to sell it for 16+ years. The issue is that the products available are all just sub par IMO.

[@veasnasvay2656]

Great great video. Simple but straight to the point

[@fembot521]

I live in Ottawa and my tax bill right now is $600 a month. It might be $1000 by the time I retire! I will be mortgage free but that tax bill is insane.

[@robertk5441]

Let me cheer you up a bit. When you retire you pay less tax. You will get basic exemption of about 13 K and age credit about 6K and pension credit 2K. If you're not getting any pension, just convert small portion of RRSP into RRIF and that does the trick.That means big chunk of your income is tax free. You're no longer contributing to CPP. Now if you have any income from dividends(you should) it's taxed at preferential rate. Example. My wife and myself total retirement income in2020 102K. Taxes paid, 5.6K. I am worried about inflation, dividend flow, Enbridge line 5 and socialism. Taxes in retirement should be considered and carefully planned. But I don't see reasons to worry. Unless they change the key to the lock.

[@SeanONeill13]

$12,000 tax a year is insane? Really??

[@rozinant1237]

Pretty sure he means his property tax is $600/mo.

[@gwarlow]

MOVE. :-)

[@Snerdles]

Come on out to the east coast. You can get an amazing house for a couple hundred grand and be paying like 4k a year in property tax. You could have a seafood feast every week and still not reach the difference in cost of living.

[@reginacid6830]

I came to this country as an adult, I don't have a 1000 /mo CPP waiting for me. Also, I dont have a house to sell. This is the reality of a lot of people here.

[@SS-kg8rj]

why do you think the government is so excited about immigration? new permanent renter class. Without the immigrant pressure, real estate crashes making it actually affordable.

[@mikedupuis9934]

Thanks for your videos. Wondering in the “no go phase” of retirement how you plan for that expensive retirement/long term care facility you might have to move to. The monthly fee for them can be very high.

[@robocop581]

My Retirement Plan is monthly income equal to 3.5x my monthly expenses at age 55. I figure my monthly expenses will be consistent from age 50-70. 3.5x should easily cover increase in inflation

[@RC-fh2lk]

Great info as always!!! A video comparing taking CPP at 60 vs 65 but still working till 65. I’ve been told if I take CPP at 60 but keep working and paying into CPP until 65 I’ll still get my normal payment at 65 with no reduction. Thanks

[@ParallelWealth]

Thanks Ron. I'll see if I can get a video together on this. It's going to be less at 65 if you start at 60 even if you keep paying in, but I will try and get some numbers behind this so we can work through a case study. It's on the list!

[@RicardoRoams]

I'm an American and I'd like to retire to Canada. I'm 71 years old with a heart condition and diabetes. I control my diabetes through weight control, exercise and diet. No medication needed. I also have COPD because of life long asthma. But ironically, I'm as active as I've ever been. I still do serious hiking, aerobics, weight lifting, etc. But I'd still probably be barred from permanent residence in Canada because my age and health issues.

[@misterlinesman968]

Most people will never have an extra 1 million to invest and banks will pay you 0.4% not 4% interest nowdays.

[@BU-mg4je]

Thanks for the video, you confirmed what I have planned was correct.

[@ParallelWealth]

Glad I could help!

[@mariex800]

Something I like to add onto the 4% things. I was researching for retirement because it is an inevitable subject. Somehow, I did come across the 4% rule, a very popular discussion in the space and books. A very simple solution is to invest in ETF, index fund, and quality growth stocks. Do this while you are still young. By the time you reach close to retirement, you will need not do the 4% rule thing because you are living off of your dividends instead of touching your 4% principle. This is diversification strategy and a great solution. Sir, great contents by the way and thanks for sharing.

[@Dharmicaction]

4% is hard to come.

[@alan4sure]

My wife and I found not having kids helps immensely. Same with pets. And instead of thinking of things you'd like to have or feel you deserve, think of why you DON'T.

[@ImVeryBrad]

Ya dude, kids are expensive. I have 2. They basically eat money haha

[@alan4sure]

@@ImVeryBrad Lol I remember being a teenager. 3 burgers at A&W for lunch🍔

[@xbman1]

You can retire with $1.2 millions today. You can have approx $50k income/year and still have 2% or more continue to compound interest factor. Every 6 to 7 years or so. You can increase that original $50k. Once you understand the Canadian basic tax laws. You’ll be surprise how tax efficient you could be. Result, more money in your pockets.

[@johnmorrison9758]

Don't forget that a lot of us have a house that is now worth a fortune. Sell and you have enough to rent for the rest of your life, no problem. No need to sit on all that cash.

[@mrofnocnon]

Rents are not cheap.Almost 3 grand a month around here. At 36,000 a year your cash won't last long.

[@tonemeister2318]

4% rule is a great rough estimate. It does take into consideration inflation. Great if you do not have software and relatively close

[@azamarabear]

Thanks for the upload😮

[@rushdiehard8784]

im 50 and have been retired for 3 years. in 2003 I bought 000's of amazon stock. the stock market isn't for everybody but if you research and do your homework like I did you will be fine. Luck was there for me as well. Be motivated and consistent with your future plans. Great content and video. Thumbs up!!

[@trungthieu6866]

Thank for the video. you mentioned about medical bills but I did not hear about pharmacare for senior in BC!

[@Sam-if8eg]

Great content. Thank you!

[@davidwegner9690]

Excellent as usual!

[@-Ordinary-Average-Guy]

Would you ever consider touching on the topic of retiring with debt? There are a lot of people in that situation. I know people in their 60s who still have a mortgage. At 55 my personal situation is I'm mortgage free since 2012 and I have just over $300K in RSPs. I have no financial plan for retirement. And I have not talked to anyone about it. At the same time I still don't think I have enough in my RSP to retire comfortably. With all levels of government constantly coming after us for more taxes I think it's getting harder and harder for people to meet their retirement goals.

[@robertross8565]

Great content. Love your approach.

[@ParallelWealth]

Thanks Robert

[@Nonduality]

The first thing is to define retirement for YOU. Don't let a financial planner, a relative, or a rich friend of a friend define retirement for you. This video assumes it knows what retirement is for YOU. If you let any financial planner decide what retirement is for YOU, you're already lost.

[@ParallelWealth]

A good financial planner won't define what retirement is for you, they will help you best fund your retirement- paying less taxes and allowing more to pass to loved ones.

[@Pacman398]

This is broad advice meant for a wide audience. Of course, individual circumstances must be factored in. Point is, you need a plan of some sort as early as possible.

[@thrshwll1526]

Exactly. Thank you

[@RavinderSingh-hy7iz]

Very nicely explained. Thanks

[@nickyvo7792]

Best advice. Thanks.

[@BetterYet]

I have no intention of retiring in Canada.... way too expensive.

[@vroddestroyer300]

We are retiring this year with a monthly income of just shy of 10,000.00 a month after taxes

[@ParallelWealth]

Good job saving Gordon. Enjoy retirement.

[@RyanNewell]

73% are worried about outliving their savings. Yup. I understand my plan and am quite conservative but inflation could still be a killer. 2.2m invested but 60 years left of retirement. So far the account grows more than I use but the worry about a multi year market correction is real. Currently a 5-year GIC ladder is the insurance against a large drawn out correction.

[@robquasi6153]

Retired at 42 17 years ago, if anyone has questions?

[@mainlandwealth]

Great video, thanks!

[@jacquieb112]

Hi, thank you for the great info! What retirement planning software would you recommend for Canadians?

[@ParallelWealth]

There isn't many great ones for public use. Hoping to change that one day!

[@GetCloudSkills]

OK first, basing your retirement income off your working income is not entirely smart. My working income is extremely high, and I do not need nearly as much in retirement. Second, the 4% rule (updated to 5% now) is based off your account balance so it changes every year. As your account balance grows (invested), you take home more.

[@ParallelWealth]

If your income is extremely high as you mention, then you will definitely be less than the average 60-70% of income needed in retirement. I put together a video on this coming out next Monday. Thanks for tuning in.

[@doug7745]

Great video. Looks like I might have enough money unless I live past 90. Most of my income is in a RRIF. Looks like this year we will have a recession so my nest egg is going to take a beating. 4% of $400,000 is lot less than 4% of $700,00. And I understand at my age ,72 I have to take out more than 4% according to government rules? I wanted to retire with $1 million but life got in the way but with my mortgage and car both paid off ,plus 2 years of Covid do nothingness I was surprised how little I needed to live on. Do I wish I had more money? Of course , but be realistic and budget and you should be OK.

[@TheCaperfish]

ok people at age 50 figure out how much you spend per year average to live , bills etc, then go into into bank and figure out how much money ya got and take that and divide it by 20 then take off what yer total bills for 20 years adds up to , that will tell ya how much ya can spend every year (spend it on something you enjoy) to be broke at 70 , ya want be broke at 70 cause at 70 ya probably be going into a home soon then and you won't have to pay for it , let all the taxes ya paid in yer life pay for it , and use and enjoy the money ya saved yer whole life before that magic age of 70 where all bets are off once ya hit it. ya can't use 90 for a target age dude who makes it that far and who needs any money from 75 to 90 ? if ya do make it that far , yer sitting in a seniors home with drool coming down yer chin don't need any money there , spend it while ya can and go out broke , this aint a dress rehearsal

[@spruceguitar]

Thanks for the great vid. If you leave Canada at retirement: - What do you lose, the OAS …?

[@spruceguitar]

To clarify I will have been here 40 years by the time I am leaving Canada at 60.

[@Gurkha9]

@@spruceguitar Then you would qualify for full OAS. Only GIS is not available outside Canada. I also plan to leave at 60.

[@spruceguitar]

@@Gurkha9 Awesome thanks! 👍 My only other dilemma concerns working for public or private. - I have 5 years in hospitals. If I do another 15 years I can hope for a partial pension. Plus the contribution, where they add 100% of what you put in. I cannot reverse the 8 years I spent in the private. - If I make 70K in the public sector vs 100K in the private: Is it worth staying in the public sector another 15 years for the pension? Even if I put 15K / year aside in the private … I may not have enough money to rely on at age 60. What are your thoughts? Thank you 🙏

[@Gurkha9]

@@spruceguitar I never worked for big companies so I don't have a defined benefit pension plan. I saved and invested myself. You might be better going with the matched contribution plan in the public sector route. If I was going to do it over agin, I'd probably go that route, especially if the plan is indexed to inflation. But it all depends how disiplined you are in saving and investing. I am a lot closer to 60 than you are, just waiting for countries to open.

[@rajsharma2809]

Good lesson.

[@LooseArrowBoy]

Just to simplify, on a 3% ROI you can withdraw about 5% for 25 years? On a 5% ROI you can with draw about 7% for 25 years? Is that a correct assumption? Curious what are the statistics of living beyond 90 years and what is the cost of living after that. Aside from that I think the 4% rule is a great goal for people planning for their retirement early in life or financial independence. It's an early lesson about the potential of wealth saved and invested early. For people that are approaching retirement it is more important to plan for what you will have rather than what you wish you had. Looking at your retirement as a draw down to 0 is much more feasible and is commonly practiced for the people who could not build a large nest egg.

[@vincenttamesis1]

thank you for this. great info.

[@me888ize]

Thank you so much Adam ❤

[@ParallelWealth]

My pleasure!