20 Jun How much should you save for retirement?
Looking to figure out how much you need to meet your retirement goals?
You’ve decided you need to save for retirement by contributing to a registered retirement savings plan (RRSP) or your company pension plan. The question is, how much will you need and how much should you save? Unfortunately there isn’t one simple answer.
“The older you are when you start your retirement savings plan, the higher the percentage of income you have to put aside, because you’ve lost years of compounding,” says Gordon Pape, author of RRSPs: The Ultimate Wealth Builder. “A 25-year-old might only need to save 8% – 10% of income each year. However a 45-year-old might have to save as much as 25%.”
Your financial advisor can help you determine how much you need for retirement and how much you have to save. But you can start by asking yourself the following questions.
To read the 9 questions and the rest of this article by SunLife, click here.