Upper Middle Class Retirement Income In Canada

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Upper middle class retirement income in canada. However knowing your own projected retirement income from now throughout retirement and also calculating your future spending is the key to a secure retirement. There s one inherent advantage that middle class income earners have over the high income crowd. I estimate that a bare bones but fulfilling middle class retirement for a single person in canada starts at about 33 000 a year for singles and 44 000 a year for couples. The built in advantage of middle class income earners.

Retirement income 2020 is only part of the equation. Knowing about average retirement income 2020 is interesting and one way to benchmark your financial health. While a high income person may need 100 000 per year to early retire a middle income person may be able to do it on 40 000 or less. In my view you should be able to live a middle class retirement lifestyle spending 42 000 to 72 000 a year per couple including what you pay in income taxes assuming you have a paid for home.

So for a middle class retirement you need a nest egg of 250 000 to 1 million. A couple of weeks ago i pointed out in a column about the upper middle class that an income of 90 000 per year would put you at the 90 th percentile of the canadian income. Senior couples in canada both spouses over 65 with no additional family members in the household spent on average 67 900 including income taxes in 2016 according to custom analysis by the. Some also define upper middle class as those who are college educated with incomes in the top 15 roughly 100 000 or greater for households or 63 000 or greater for individuals.

In 2015 justin trudeau spoke in an interview with peter mansbridge about the middle class tax bracket as being from 44 000 to 89 000 and a typical family of four being one that earned. Financial planners suggest that you need retirement savings that amount to 25 times your desired retirement income excluding cpp and oas if you want to keep spending that much for the rest of your life. The need for less income.