How Much Does it Cost to Retire in Canada if You're Single?

Рет қаралды 18,311

Жыл бұрын

Financial planning and retirement planning is quite a bit harder if you're single. It's an inconvenient truth and we hope that maybe the government will realize this and find a way to modify our pension plans to reflect this as it becomes more problematic.
However, since we don't have any control over that, in this video, Kent tries to break down about how much it will cost for a single person to retire in Canada at the age of 65.
If you're young, just start plugging away for this now. If you're getting closer and want to ensure that you can retire, please feel free to contact us for a review.
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DISCLAIMER: All content being published on this platform are for informational and entertainment purposes only, and do not constitute formal financial, accounting, nor legal advice. Kent Tilley does not hold formal education nor registry to be held accountable for any professional recommendations - those in need of formal financial advice/ planning must seek help from licensed professionals. Kent takes pride in the sense of freedom, satisfaction, fulfillment, and empowerment that financial competence that he has built through conscious management of his family’s money. With this, there is no guarantee that the overall content found here are appropriate or applicable for every individual. By proceeding, you agree to hold Kent harmless from any ramifications, financial or otherwise, that may occur to you by acting upon the information found on this platform.

Пікірлер: 91

@HuatulcoGuy Жыл бұрын

Retired single Canadian here. 61 years old. Moved to Mexico. Rent of a small apartment is $300 CDN a month. Food is approx. $500 a month. Mexican public healthcare is approx. $90 a month. I think it is a good idea to have an emergency fund in which you can build by contributing $300 a month. So if you can draw $1,200 a month to live on it is possible to live a comfortable retired life here. IMHO.

@K4Financial Жыл бұрын

Thanks for the input. Sounds like a great retirement plan

@vistaww Жыл бұрын

wow, where are you at in Mexico? Where I’m at (Baja) you couldn’t get a closet for that!

@HuatulcoGuy Жыл бұрын

@@vistaww @vistaww I live on the Pacific coast of Oaxaca. Since I posted this 8 months ago, inflation, gentrification and the stronger peso has become evident in this area, as everywhere in Mexico. A small apartment will now run you approx. $450 CDN. Food is about $625 a month. Mexican public healthcare is around $115 a month. You probably want to start contributing $400 a month to an emergency fund now. So if you can manage $1,600 CDN a month, you can enjoy life here. The scary thing is, in less than a year the price of living in this part of Mexico has jumped by $400 CDN a month. 😣

@alhumphreys5784 8 ай бұрын

My elderly mom lived in BC for less than a $1,000 all in with a 1 bedroom apartment.

@debbielockhart7762 28 күн бұрын

@@alhumphreys5784No way is that even close to possible in BC at this time.

@John-nx9hx Ай бұрын

Good video. I am retiring single in 5 days at 59y/o, your numbers are are almost spot on. I can bridge myself to 65 and start CCP/OAS then. I am maxed out on my TFSA contribution room, I plan on overdrawing on my LIF/RRIF to what I actually need [while keeping under $50,000 income tax threshold] to be able to keep making yearly max. contributions to TFSA. All single people need to realize the CRA can/will take up to 50% of money left in registered accounts [LIRA, LIF, RRIF, RRSP] upon your death. Getting that money out of the registered accounts and into TFSA or even unregistered accounts should not be overlooked. I want to leave my money to family and charities, not the CRA.

@kcirdorb9591 Жыл бұрын

Thanks Kent -great segment....lots of us fall into that single category.

@evadeanu1 Жыл бұрын

Great video. Thanks.

@aldeserrano5490 Жыл бұрын

Good video. Thanks. Very informative

@jovicrazed Жыл бұрын

Good information and example. Thanks, Kent!

@K4Financial Жыл бұрын

You’re welcome

@dvq1841 Жыл бұрын

Thanks for making this video, very insightful!

@K4Financial Жыл бұрын

You’re very welcome

@flaviousmaximus3484 Жыл бұрын

As a single person in their 50s, I decided a long time ago that investing was too risky (for me) to fund retirement. My solution was simply to look for the safest employment option that offered a fully indexed DB pension. Turned out all right. I'm on track for $5,000/month net retirement income (work pension + cpp + oas). All fully indexed to CPI. No investments (or worry) required !

@K4Financial Жыл бұрын

Great plan if you can find that kind of employment. Glad to hear it sounds like it will work out well for you

@evadeanu1 Жыл бұрын

I’m happy for you and hope for a long, healthy and happy retirement. What is a DB pension?

@flaviousmaximus3484 Жыл бұрын

@@evadeanu1 - DB or "Defined Benefit" is a pension plan that offers a defined benefit (retirement income) that is guaranteed. Both employee and employer pay into the plan. How much you get depends on the number of years you paid into the plan and for how long (the employee contribution rate is a % of your income). Usually I've seen DB plans replace up to to 70% of your gross pre-retirement income (if you contribute 35 years into the plan). These plans are more common in the public service sector and are less common in private business as the employer takes all the investment risk. It is possible that DB plans have their benefits changed (reduced) so its always better to stick to plans with a large number of members (safety in numbers). In my case I went with the federal public service because any shortfalls in funding (bad investment years) is covered by the federal government and Canadian tax payer.

@evadeanu1 Жыл бұрын

@@flaviousmaximus3484 thank you so much, Flavious. It looks like I have DB. I much appreciate your detailed reply.

@ariefraiser140 Жыл бұрын

I will point out at the end of the day for the work pension you are still very much dependent on the stock market but you're just insulated from managing a portfolio. Most pensions don't just leave their pension money sitting in a savings account. It's a huge legal responsibility to manage pension funds and make sure all pensioners receive what the company is obligated to pay especially if the pension has a inflation adjustments. This means most pensions plans are fairly heavy in the stock markets. Additionally you have to be concerned with the company possibly failing and going out of business which would have a major impact on the pension. Here in the US there is an agency who attempts to mitigate such situations to the pensioners but you could still in the end end up receiving only 20% of your pension. Pensions are very very nice and most would rather have one but they're not this holy grail retirement fund that removes all retirement financial worries.

@sasesinghan3543 Жыл бұрын

Thank you, Thank you Kent for this. Fellow Edmontonian. Love your videos especially in collaboration with Adam B, my other favorite KZfaqr investment guru. Really happy your business is growing. Pretty darn sure I'll be coming to you in the next 5 to 7 years to iron out my plan especially regarding tax planning and using the rrsp meltdown strategy. I also wish the federal government would look at a single person retiring in Canada. I don't plan on ever coupling up. More and more Canadians will end up being single by retirement in the coming decades. And also looking at possibly becoming an expat in a different country to stretch those dollars. 48 years old next month. On track for my retirement on my own. As long as the market bounces back, my magic number is 58 or age 60 at the most. CPP and possibly OAS delayed to age 70. Healthy rrsp and tfsa portfolios to support $50k per year. Resp for child fully funded, with upwards of $40k, able to transfer back into my rrsp if they don't use it all. Own my own home, and hopefully future inheritance will allow me to finally pay it off by retirement.

@K4Financial Жыл бұрын

Sounds like a very solid plan. You’re very welcome

@aldeserrano5490 Жыл бұрын

Single here, no debt no mortgage and will retire at 59. No pension just RRSP . Can’t wait

@John-nx9hx Ай бұрын

Same here! Only 5 days work left! Totally stoked! Best of luck to you.

@brianferris5728 9 ай бұрын

I think this site is pretty accurate on what funds are needed per year

@brucecampbell7347 Жыл бұрын

Adding to the TFSA not just with cash but investments is the best way to generate long term income. TFSA was and still is widely misunderstood by people at large. I wish that basic finance was taught in high school so that from a young age people would have a better understanding of the options out there. Thank you for the video I am in my 40s right now but it was still a very relevant topic to anybody working towards retirement that is single.

@K4Financial Жыл бұрын

You’re welcome. If I ever get any fame whatsoever, I’ll push for financial education in school as hard as I can.

@gwarlow Жыл бұрын

@@K4Financial Yes to Bruce Campbell’s suggestion. Presently there is very little real world financial training in high school, and on your first day in College or University there are (were?) tables set up with people trying to sell credit cards to students. A recipe for financial pain down the road.

@Cornuts1000 Жыл бұрын

Thanks. People desperately need to jam money in their TFSA. Like your earlier video states; GIS can be your friend if you play your cards correctly. Drawing down your rrsp earlier then later has its benefits but the other hand would be to not draw on the rrsp but instead draw on the Big TFSA and delay some cpp to increase its payments and then draw on the rrsp later and just pay the tax. Dividends from Blue Chip stocks can help to supplement your income as well and they are taxed lower then GIC’s. I’m just offering my novice opinion on what I’m trying to do.(minus the GIS)Love your videos!

@K4Financial Жыл бұрын

Thanks Gary. It can be a tricky balance and there’s no one-size fits all way to do it, but TFSAs always help.

@christinee8353 Жыл бұрын

If I understood right you want to use the tfsa earlier then use rrsp and pay higher taxes later....your largest tax savings may be better off by drawing down rrsp earlier, delaying cpp and OAS then using TFSA to top up in the cpp and oas years. Or using it as an emergency fund so you don't have a large tax bill in a given year.

@markust8904 Жыл бұрын

Wow! thanks for that video, Kent you described my situation almost perfectly, single as a 66 yr old. But, When looking at my CRA account and the money i would receive from OAS and CPP, ( according to them) it falls thousand of dollars short of what i would need $4000 to live or so. I am currently still working and bring in about 42,000 a yr. but i dont want to work anymore. Also my TFSA is also, being usurped as i found out when i was out of the country for a few years in the US, (2000-2003) when i returned to Canada It was not documented (my return to Canada) the Govt. says... and now i am being taxed as a non resident for my TFSA account, i currently owe $1600 and a previous payment of $1500 from the year past. 2021. And i only have $15 grand in the TFSA. I dont want to contribute any more to TFSA until the situation is resovled. it is currently in the works, which is god knows how long that might take and still being charged interest on my TFSA funds. I only have a 29,000 RRSp that is fixed, so basically i will be in scenario 3 eating saltines, when i retire.

@katydidnt3906 5 ай бұрын

I had the same thing happen to me when I returned from working in the US and then contributed to a TFSA. I was able to correct my return date and all was reversed, including the penalties and interest.

@thozil66 Жыл бұрын

Thanks Ken. You should copyright those phase names😅

@photoMorg Жыл бұрын

I'm single at 62 and want to retire next year and there will be no breaks for me!

@K4Financial Жыл бұрын

There generally aren’t. It’s way more difficult

@dancallis3254 Жыл бұрын

Average CPP in 2022 is $737, the max is $1253. A $500 difference, pretty significant.

@katydidnt3906 5 ай бұрын

In which case, a person would qualify for some GIS, if there was no other income than the CPP

@caperboy1169 Жыл бұрын

CPP and OAS should cover my expenses. I also have a defined pension and RRSP . I was given an estimated monthly income as long as I do what my financial advisor tells me.

@jamaicaigot9335 Жыл бұрын

Thank you for the information, are you also in audea btw? I'd like to listen more of your contents

@K4Financial Жыл бұрын

I’m not, but I’ll look into it

@cleanasdirt6832 Жыл бұрын

I believe the question should read, how much it costs you to become single?

@shirleycrosner634 Жыл бұрын

Excellent presentation - as well as discussing a neglected group called single pensioners / However - one issue that needed to be discussed a bit more - is the added cost of car ownership / And as you get a bit more mature - you certainly don't want to haul a shopping buggy through un ploughed sidewalks to reach a bus stop / Because it involves physical risks ! But for many years - i did without a car - but - not at this stage in life - and yes - I was fortunate enough to generate additional revenue for that important issue..

@jwallace9984 8 ай бұрын

I've chosen not to own a car, so that I could retire as a single person. Don't tell me it can't be done. Living in downtown Calgary is quite doable without horrendous car expenses.

@user-fv6ke8vv2z 6 ай бұрын

@@jwallace9984 - Good for you ! / however - one size doesn’t fit all - especially, if the person has the means and the desire… and wants a better quality of life … and I do… 🤣

@kuldipbachhal1201 Жыл бұрын

I am 65 and I am on WCB, I want get retirement. My employer still keep a job for me. And I have some restriction go to work on same job, and I am getting cpp already and getting find from WCB to , I am mixed up. When I am on WCB I cannot leave Canada. Please any suggestions

@elterrifico9522 Жыл бұрын

Love the McD jersey

@alicjap3482 Жыл бұрын

A single 65 year old person who has no other income except CPP and OAS will also quality for approx. $250 GIS/month. Most provinces have some benefits for people on GIS. And there is the GST Tax Credit.

@gwarlow Жыл бұрын

If you are poor you will be slightly less poor thanks to the GIS. If your mortgage is paid off you will probably manage okay. If you are paying rent in any place other than a rural area, you will be challenged. At least our politicians will be okay. They receive much more than the rest of us and they don’t have to put in 25-40 years of employment to get their generous pensions. Democracy at work? Ha.

@katydidnt3906 5 ай бұрын

Somebody finally is saying it!!

@seolfor4797 Жыл бұрын

Hi Kent - fantastic video - I know a ton of divorced people entering retirement over the next 5-8 years. What freaks out everyone is paying $7000+ per month for long term care. Big chance that we’ll outlive our money. Love your channel:).

@K4Financial Жыл бұрын

Definitely a short term concern, but if you ask me, that’s less of an issue than you’d think. 1. You can sell your home to pay for it 2. Canadians won’t allow our government to put seniors on the streets

@flaviousmaximus3484 Жыл бұрын

As someone retiring in that timeframe, I have the same concern. My solution was to make sure I own a home outright and setup the largest sized HELOC a bank would give me before retirement (when you likely qualify for more). That gives you options to fund in home care, or a LTC facility without necessarily selling your home. Another option is setting up a LTC insurance in your 50s (will offset the LTC costs by a few thousand per month).

@evadeanu1 Жыл бұрын

$7,000 per month? Those prices are ridiculous! Who can actually afford it?

@GT-tm1ft Жыл бұрын

Here's something from Adam at Parallel Wealth regarding care homes. Not as bad as one might think. kzfaq.info/get/bejne/hZqHdrqpta7Vdo0.html

@neolithic3 Жыл бұрын

@@evadeanu1 That's not even that much compared to some. I know someone who is paying well over $10k per month and their life savings are draining very fast as you can imagine.

@daves6488 Жыл бұрын

Could you just use the same amount for desired spending in retirement for each year and inflation would essentially decrease it every year?

@K4Financial Жыл бұрын

It might work. Guess it would mostly depend on how much had to come from you and how much was coming from sources that increase with inflation. I’ve never done a plan that way, so I’m not totally sure how it would look, but in theory it could work as long as your fixed expenses were covered by CPP and OAS

@somai_1 7 ай бұрын

What should those numbers look like for a large, expensive city like Vancouver or Toronto?

@K4Financial 7 ай бұрын

It all depends. If you own a place, it’s different. How much are you going to get from CPP/OAS? What’s your estimated longevity? All we can do is guess. One thing I know for sure is that it’s way harder to retire if you’re single. More bills, higher taxes and less money from the government.

@andreaskaphengst8121 Күн бұрын

Do you really need more money when you are 82 and older. I think that most people at that age stopped travelling, some stopped driving a car so, your expenses should be less.

@gwarlow Жыл бұрын

8:43 Wow. That extra 65 dollars a month is really going to make a difference. Sadly, no it won’t. How much do “retiring” federal/provincia politicians get per month? Great video though. You presented some sobering information that could help many. Cheers!

@John-nx9hx Ай бұрын

[$800/year] $65 is what I spend a week on groceries, for some people it could mean a lot more then others and it may be a huge help. OAS is and always has been meant to be an income supplement not a full pension!

@kuldipbachhal1201 Жыл бұрын

And I am widow.

@dawna4185 Жыл бұрын

vanlife is looking better and better

@katydidnt3906 5 ай бұрын

It is freedom. I have been doing it for 4 years. Average monthly expenses (ALL - insurance, food, gas, repairs/maint, license, entertainment/socializing, plate, cell phone, CAA, Prime membership, gym membership for showers on the road) is $1500-2000 (if you own the vehicle outright). Of course depends on how much you travel, gas being the biggest expense you have!

@encarbondoc8185 Жыл бұрын

Yes ,the government should help the single when they retired,

@dwaynedonald2939 Жыл бұрын

I agree with beautiful 🥰 Encar

@johnnyboyvan Жыл бұрын

DB and TFSA is the way to retire early. Amen 🙏 Also, no debts and own the condo outright. After tax over 4k as a single is ideal. I love Parallel Wealth. Hahaha 😆 inflation is 7 percent and counting. Let us be real. Us singles get slammed so badly.

@photoMorg Жыл бұрын

average CPP 727 plus 685 OAS total 1412$ I'm hoping my CPP will be 1000$ if I decide to collect at 65

@K4Financial Жыл бұрын

Have you checked service Canada to see what it will be? I’d suggest you do that

@katydidnt3906 5 ай бұрын

Go the the gov't website for their pension calculator. You would likely qualify for GIS, if your only taxable income is CPP

@zman-ru3yf Жыл бұрын

Same as if you're not single. How many years are you planning to be retired how much per year will you spend. 1+1=2

@K4Financial Жыл бұрын

Not exactly

@Thunderbuck 4 ай бұрын

So, does your tax calculation include basic personal amount (about $15k) or seniors amount (about another $6.5k after 65)?

@K4Financial 4 ай бұрын

It roughly should

@bridgefinder7508 Жыл бұрын

2500 to 4000 after taxes!! Well it looks like I'm going to Starve to death 😳

@xxgg Жыл бұрын

After watching the video, being in mid 40's.. I can already see myself working beyond 65. Oh god. I do have 1 question, calculation in the video is based on a single person who already own a home? Mortgage free?

@K4Financial Жыл бұрын

Yeah, it’s based on someone who is mortgage free. You’re still young. Tons of time to get things in order

@KimJilene 6 ай бұрын

I just turned 40 and I am scared sh!@less about retirement as a single person 😵‍💫I am drowning in debt and now can only think about getting out of debt so I can start building up my retirement- which I won’t realistically be able to do until I am in my mid 40s 😖😣

@xxgg 6 ай бұрын

@@KimJileneKeep it up. Let's come back in 5 years to this comments and where we are.

@somai_1 7 ай бұрын

Nobody gets full cpp

@K4Financial 7 ай бұрын

That’s not true

@katydidnt3906 5 ай бұрын

He clearly said most don't. Pay attention