{"id":6976,"date":"2019-02-12T11:45:16","date_gmt":"2019-02-12T15:45:16","guid":{"rendered":"https:\/\/finvest.ca\/?p=6976"},"modified":"2019-02-12T11:45:20","modified_gmt":"2019-02-12T15:45:20","slug":"%ef%bb%bfis-the-70-rule-still-valid-for-retirement","status":"publish","type":"post","link":"https:\/\/finvest.ca\/en\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\/","title":{"rendered":"\ufeffIs the 70% rule still valid for retirement?"},"content":{"rendered":"

Is the 70% rule still valid for retirement?<\/strong><\/p>\n\n\n\n

You have certainly heard that in order to enjoy\na comfortable retirement, you will need 70% of your average gross income over\nthe last three of your working years. Does this rule of thumb still apply in\n2019?<\/p>\n\n\n\n

The rule of thumb<\/strong><\/p>\n\n\n\n

Calculation of defined benefit pension plan\nannuities (government employees), which are for all useful purposes life\nannuities: the annuity is calculated by averaging  the gross earnings of the last 3 or 5 working\nyears multiplied by the number years of contributions to the plan, times 2%,\nwith a maximum of 35 years. 35 times 2% = 70% is the maximum of the pension.<\/p>\n\n\n\n

The 70% tends to justify the method of\ncalculating the needed income for everyone come retirement time. But do you\nthink someone who earns $20,000 a year can retire on $12,000 ($14,000 minus\ntaxes)? <\/p>\n\n\n\n

A family of 4 will see it\u2019s cost of living\ndecrease significantly come retirement time: the children will have left the\nnest, the house will probably be mortgage free, earning an income expense will\nbe eliminated, less clothes to buy … But those six months in Florida …<\/p>\n\n\n\n

On the other hand, a single person will not see\nhis cost of living decrease by the same amount, but will probably have saved\nmuch more for his retirement.<\/p>\n\n\n\n

If the 70% rule of\nthumb is dropped, what rule should we use?<\/strong><\/p>\n\n\n\n

A differential budget!<\/strong><\/p>\n\n\n\n

Establish a budget using two columns.<\/p>\n\n\n\n

The left column represents the current year’s\nexpenses. The right column, those of your first year of retirement. Some lines\nwill be higher and some others lower.<\/p>\n\n\n\n

Once this exercise is completed as honestly as\npossible, schedule a meeting with your financial planner. With him, you will be\nable to discuss subjects such as: at age 75, I will not have the same needs or\nthe same ability to travel, what about inflation in all of this, selling of the\nhouse, my life expectancy etc\u2026<\/p>\n\n\n\n

Analysing your\nretirement income<\/strong><\/p>\n\n\n\n

During this meeting, you will tackle the stingy\nsubject: \u00ab\u00a0how much will I need to save to enjoy a comfortable retirement?\u00a0\u00bb<\/p>\n\n\n\n

In conclusion: \u00ab\u00a0One\nnever starts too early to save for retirement!\u00a0\u00bb<\/strong><\/p>","protected":false},"excerpt":{"rendered":"

Is the 70% rule still valid for retirement? You have certainly heard that in order to enjoy a comfortable retirement, you will need 70% of your average gross income over the last three of your working years. Does this rule of thumb still apply in 2019? The rule of thumb Calculation of defined benefit pension […]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[68],"tags":[],"class_list":["post-6976","post","type-post","status-publish","format-standard","hentry","category-non-classe-en"],"yoast_head":"\n\ufeffIs the 70% rule still valid for retirement? - Finvest<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/finvest.ca\/en\/\ufeffis-the-70-rule-still-valid-for-retirement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\ufeffIs the 70% rule still valid for retirement? - Finvest\" \/>\n<meta property=\"og:description\" content=\"Is the 70% rule still valid for retirement? You have certainly heard that in order to enjoy a comfortable retirement, you will need 70% of your average gross income over the last three of your working years. Does this rule of thumb still apply in 2019? The rule of thumb Calculation of defined benefit pension […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/finvest.ca\/en\/\ufeffis-the-70-rule-still-valid-for-retirement\/\" \/>\n<meta property=\"og:site_name\" content=\"Finvest\" \/>\n<meta property=\"article:published_time\" content=\"2019-02-12T15:45:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-02-12T15:45:20+00:00\" \/>\n<meta name=\"author\" content=\"Finvest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Finvest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/finvest.ca\\\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/finvest.ca\\\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\\\/\"},\"author\":{\"name\":\"Finvest\",\"@id\":\"https:\\\/\\\/finvest.ca\\\/#\\\/schema\\\/person\\\/d9697696301ac54510f0da1d14005ec8\"},\"headline\":\"\ufeffIs the 70% rule still valid for retirement?\",\"datePublished\":\"2019-02-12T15:45:16+00:00\",\"dateModified\":\"2019-02-12T15:45:20+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/finvest.ca\\\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\\\/\"},\"wordCount\":357,\"commentCount\":0,\"articleSection\":[\"Non class\u00e9 @en\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/finvest.ca\\\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/finvest.ca\\\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\\\/\",\"url\":\"https:\\\/\\\/finvest.ca\\\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\\\/\",\"name\":\"\ufeffIs the 70% rule still valid for retirement? - Finvest\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/finvest.ca\\\/#website\"},\"datePublished\":\"2019-02-12T15:45:16+00:00\",\"dateModified\":\"2019-02-12T15:45:20+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/finvest.ca\\\/#\\\/schema\\\/person\\\/d9697696301ac54510f0da1d14005ec8\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/finvest.ca\\\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/finvest.ca\\\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/finvest.ca\\\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/finvest.ca\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"\ufeffIs the 70% rule still valid for retirement?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/finvest.ca\\\/#website\",\"url\":\"https:\\\/\\\/finvest.ca\\\/\",\"name\":\"Finvest\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/finvest.ca\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/finvest.ca\\\/#\\\/schema\\\/person\\\/d9697696301ac54510f0da1d14005ec8\",\"name\":\"Finvest\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/2cf66dc67542179696c84ad56012869a8b41e0745625a8a58b38d05997835365?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/2cf66dc67542179696c84ad56012869a8b41e0745625a8a58b38d05997835365?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/2cf66dc67542179696c84ad56012869a8b41e0745625a8a58b38d05997835365?s=96&d=mm&r=g\",\"caption\":\"Finvest\"},\"sameAs\":[\"http:\\\/\\\/www.hostingbros.ca\"],\"url\":\"https:\\\/\\\/finvest.ca\\\/en\\\/author\\\/finvest\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"\ufeffIs the 70% rule still valid for retirement? - Finvest","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/finvest.ca\/en\/\ufeffis-the-70-rule-still-valid-for-retirement\/","og_locale":"en_US","og_type":"article","og_title":"\ufeffIs the 70% rule still valid for retirement? - Finvest","og_description":"Is the 70% rule still valid for retirement? You have certainly heard that in order to enjoy a comfortable retirement, you will need 70% of your average gross income over the last three of your working years. Does this rule of thumb still apply in 2019? The rule of thumb Calculation of defined benefit pension […]","og_url":"https:\/\/finvest.ca\/en\/\ufeffis-the-70-rule-still-valid-for-retirement\/","og_site_name":"Finvest","article_published_time":"2019-02-12T15:45:16+00:00","article_modified_time":"2019-02-12T15:45:20+00:00","author":"Finvest","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Finvest","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/finvest.ca\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\/#article","isPartOf":{"@id":"https:\/\/finvest.ca\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\/"},"author":{"name":"Finvest","@id":"https:\/\/finvest.ca\/#\/schema\/person\/d9697696301ac54510f0da1d14005ec8"},"headline":"\ufeffIs the 70% rule still valid for retirement?","datePublished":"2019-02-12T15:45:16+00:00","dateModified":"2019-02-12T15:45:20+00:00","mainEntityOfPage":{"@id":"https:\/\/finvest.ca\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\/"},"wordCount":357,"commentCount":0,"articleSection":["Non class\u00e9 @en"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/finvest.ca\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/finvest.ca\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\/","url":"https:\/\/finvest.ca\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\/","name":"\ufeffIs the 70% rule still valid for retirement? - Finvest","isPartOf":{"@id":"https:\/\/finvest.ca\/#website"},"datePublished":"2019-02-12T15:45:16+00:00","dateModified":"2019-02-12T15:45:20+00:00","author":{"@id":"https:\/\/finvest.ca\/#\/schema\/person\/d9697696301ac54510f0da1d14005ec8"},"breadcrumb":{"@id":"https:\/\/finvest.ca\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/finvest.ca\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/finvest.ca\/%ef%bb%bfis-the-70-rule-still-valid-for-retirement\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/finvest.ca\/"},{"@type":"ListItem","position":2,"name":"\ufeffIs the 70% rule still valid for retirement?"}]},{"@type":"WebSite","@id":"https:\/\/finvest.ca\/#website","url":"https:\/\/finvest.ca\/","name":"Finvest","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/finvest.ca\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/finvest.ca\/#\/schema\/person\/d9697696301ac54510f0da1d14005ec8","name":"Finvest","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/2cf66dc67542179696c84ad56012869a8b41e0745625a8a58b38d05997835365?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/2cf66dc67542179696c84ad56012869a8b41e0745625a8a58b38d05997835365?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/2cf66dc67542179696c84ad56012869a8b41e0745625a8a58b38d05997835365?s=96&d=mm&r=g","caption":"Finvest"},"sameAs":["http:\/\/www.hostingbros.ca"],"url":"https:\/\/finvest.ca\/en\/author\/finvest\/"}]}},"_links":{"self":[{"href":"https:\/\/finvest.ca\/en\/wp-json\/wp\/v2\/posts\/6976","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finvest.ca\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finvest.ca\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finvest.ca\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/finvest.ca\/en\/wp-json\/wp\/v2\/comments?post=6976"}],"version-history":[{"count":1,"href":"https:\/\/finvest.ca\/en\/wp-json\/wp\/v2\/posts\/6976\/revisions"}],"predecessor-version":[{"id":6977,"href":"https:\/\/finvest.ca\/en\/wp-json\/wp\/v2\/posts\/6976\/revisions\/6977"}],"wp:attachment":[{"href":"https:\/\/finvest.ca\/en\/wp-json\/wp\/v2\/media?parent=6976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finvest.ca\/en\/wp-json\/wp\/v2\/categories?post=6976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finvest.ca\/en\/wp-json\/wp\/v2\/tags?post=6976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}