Good afternoon! Three retirement assumptions are getting tested today — how much you can safely withdraw each year, how long you'll actually keep working, and whether CPP alone could ever cover the gap. None of them hold up quite as neatly as they used to.
On The Money Today:
Why the 'safe' retirement withdrawal number just got smaller
More Canadians are working past 65, and it's reshaping retirement math
Why CPP alone rarely covers what most you expect it to
Let’s dive in.
RETIREMENT
Morningstar just lowered the safe retirement withdrawal rate to 3.9%. Here's what it means for your retirement
If your retirement plan assumes the old 4% rule, this update could mean adjusting how much you pull from your RRIF each year to make your savings last. It's a small percentage shift, but over two or three decades of retirement, it adds up to a meaningfully different number.
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RETIREMENT
Traditional pensions are fading, so more retirees are mixing part-time work, home equity and savings to make ends meet. Here's what that shift could mean for your own timeline, especially if you're counting on a fixed retirement date instead of a flexible one.
FEATURE
CPP was never designed to cover every retirement expense on its own, and most people discover the shortfall too late. The real question is how wide that gap is for your own budget, and what it takes to close it. A few adjustments, like delaying your claim or downsizing sooner than planned, can make the difference between falling short and getting by.
MONEY IQ
What percentage of Canadian workers currently have access to a workplace pension plan?
ALSO MAKING THE ROUNDS TODAY
MONEY IQ: HOW'D YOU DO?
Answer: B) 48% — just under half. Without a pension to fall back on, more Canadians are leaning on part-time work, home equity or personal savings to fill the gap.
That's a wrap for today! Before you go, we'd love to know what you thought of today's newsletter. Hit REPLY if you have more to share — we read every reply.
