Tuesday, March 2, 2010

Saving for Retirement: How Much Do I Need to Retire?

In Canada Between the CPP and OAS the government will pay out a maximum of $17,400 a year to the average 65-year-old.

Some people will say, "That is only $1,450 a month to cover basic expenses including rent or mortgage (if you have one during retirement), condo fees, taxes, insurance, food, clothing, transportation, entertainment, and long-term care expenses if necessary.

But my friend George in Edmonton is 66 and collects this amount. He has no other income and still saves $450 to $500 a month.

If this is not enough retirement income for you to live on, then it's your responsibility to create more.
One of the best retirement gifts that you can give yourself is an adequate income in retirement so that you can have fun in retirement and enjoy a lot of leisure like the Greeks enjoy.

    Retirement Principles
These are some of the most important principles for having a happy retirement:

    * Retirement should put a perpetual smile on your face.
    * To not plan for an active retirement is to set yourself up for a difficult one.
    * You don’t have to watch one minute of TV when you retire — and perhaps you shouldn’t.
    * You are never too young to retire.
    * Retiring too late means you don’t get another chance to do it right.
    * Early to bed and early to rise makes a person dull, boring, and despised.
    * Commit yourself to being a lifelong learner and your life will never be without purpose.
    * Your wealth is where your friends are.
    * Be happy while you are alive because you are a long time dead.
    * It’s better to live rich than to die rich.
Check out these resources: