Retirement income needs revised

Advisor.ca, Bryan Borzykowski

So you think your clients have enough money saved for retirement? Well, think again. According to Fidelity Investments Canada, retirees need to save enough to earn between 75% and 85% of their pre-retirement income in order to live comfortably. That’s up to 21% more than the 70% that some advisors have pegged as the earnings benchmark.

“People in retirement have higher aspirations,” says Peter Drake, Fidelity’s vice-president of retirement and economic research. “They want to travel, be involved in new activities and may well change the place they live.”

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