A clearer financial decision
How much money do I actually need to retire?
Your retirement number depends on spending, when you stop working, how long the money must last and income from other sources. A round savings target cannot answer those questions on its own.
Updated October 1, 2026 · Canadian planning context
Start with a month of the life you want
Estimate housing, food, transport, travel, health costs and support for family. Separate ongoing essentials from optional spending and one-time purchases. Some work costs may disappear while care or travel costs rise. Use today’s dollars first so the plan is understandable.
Subtract income that is realistically available
Use personal CPP or QPP and workplace pension estimates rather than maximum advertised amounts. Review OAS eligibility and income-related effects. Benefit start dates matter: retiring before a pension starts creates a bridge period. Keep income and spending on a consistent after-tax basis.
Why a withdrawal percentage is only a starting point
A fixed percentage does not guarantee that savings will last. Longevity, inflation, fees, taxes and the order of investment returns all matter. Losses early in retirement can be especially difficult when withdrawals continue. Test a longer life, weaker returns and less flexibility in spending.
“I will just sell my business or downsize.”
Those may be useful resources, but timing and net proceeds are uncertain. Allow for debt, transaction costs, tax and replacement housing. Run a second scenario with lower proceeds or a later sale. You may not need to save for every expense from investments if dependable pensions already cover much of the plan.
A simple example
A $4,500 monthly after-tax spending target minus $2,800 of estimated after-tax pension income leaves $1,700 a month, or $20,400 a year, to fund. That gap is not a portfolio recommendation: withdrawal tax, timing and the years it must last still need modelling.
Questions to take into a conversation
- Which expenses are essential and which could change?
- When does each pension begin?
- Would the plan still work with a longer retirement or a delayed sale?
Check the details
General education, not personalized financial, investment, tax, legal or insurance advice. Examples are illustrative. Rules and eligibility can change; confirm current details and policy terms. Ramandeep Singh’s practice covers insurance and suitable insurance-based savings options; other decisions may require appropriately qualified professionals.