I just read yet another article on retirement income requirements.
It said typical retirement income levels should be 70% of pre retirement income.
Some may go as low as 50%.
But what does this mean?
Couple #1 earns 300 K per year. They max their RSP's and spend the rest. They 3 vehicles, all the toys, you know what I mean. All this "stuff" in constant need of upgrade. In addition they raise 2 kids who will expect the same from their parents. A car in high school, etc.
Couple #2 earns 300 K per year. They max their RSP's and save lots more in buying and holding dividend stocks. No kids and only one, very basic vehicle.
They put away over 100 K per year.
How can the 70% rule apply to them.
It said typical retirement income levels should be 70% of pre retirement income.
Some may go as low as 50%.
But what does this mean?
Couple #1 earns 300 K per year. They max their RSP's and spend the rest. They 3 vehicles, all the toys, you know what I mean. All this "stuff" in constant need of upgrade. In addition they raise 2 kids who will expect the same from their parents. A car in high school, etc.
Couple #2 earns 300 K per year. They max their RSP's and save lots more in buying and holding dividend stocks. No kids and only one, very basic vehicle.
They put away over 100 K per year.
How can the 70% rule apply to them.