With $1.9 million net worth, couple has the means to hit their target
In Toronto, a couple we’ll call Harry, who is 76, and Louisa, who is 63, are hanging on to their jobs. Harry, an engineer, is partially retired, Louisa, a financial manager, is still working full time. For now, they bring home $14,912 per month composed of $6,400 Louisa’s salary, $3,000 from Harry’s business, $2,400 from investments, and a total of $1,512 from Harry’s OAS and CPP plus rental income of $1,600 per month. They live in Ontario. They apply management skills to retirement planning. Their issue: do they have adequate resources for life ahead?
When retired, Louisa can expect $68,000 in company pensions and Old Age Security of about $6,860 for having been resident in Canada for 38 out of the 40 years required after age 18 to qualify for full benefits. Harry already receives OAS and CPP benefits.
By most standards, Harry and Louisa are prosperous, but they worry about what will happen to their way of life when Louisa ceases to generate her $12,000 monthly salary. There is some uncertainty about when she should begin drawing CPP and OAS and when to start drawing down Registered Retired Savings Plan balances.
MONTHLY SPENDING SNAPSHOT