canada retirement planning

Is one million dollars enough to retire in Canada?

The short answer to this question is, of course, a resounding “yes”, but it may not be the kind of retirement that you’re thinking.

Whether or not one million dollars is enough to retire in Canada all depends on your lifestyle, spending habits, and health at retirement.

One million dollars is a huge chunk of money to retire on but in contrast, it isn’t as big of an amount as most Canadians would think.

While not all Canadians have a million dollars of a retirement portfolio, it isn’t something that you could afford to live a lavish lifestyle from. Well, at least if you plan to make it last throughout your lifetime.

When properly managed, a million bucks can provide you with $40,000 per year or around $3,000.00 a month of retirement income. That’s without considering any other income sources like government and/or company pensions (if any).

If not further invested, and at a withdrawal rate of $40,000.00 a year, a million bucks of retirement fund will last you 25-years. So if you’re looking to retire at 65 years old a million dollars, your money should last you until age your tender age of 85, the obvious risk here, of course, is the potential outliving your funds, in case you withdraw too much on a yearly basis.