Here are two great tools that work together as 1st steps to retirement planning process. The Retirement Budget you can download as either a pdf or a excel file. It has two columns: what you want to spend now and what you think you will spend when you retire by category.
Key Questions to ask yourselves when filling out my current budget:
-If I/we have been taking home let’s say $50K a year for the last 10 years, and our current budget is $40K a year according to the Retirement Budget” why don’t we have $100K in the bank? You probably have not been honest with yourself in what you spend. If you have never budget before the it’s easy to miss the coffee here, the drinks out there, the small clothing purchase ect. If your budget is nor realistic of your current spending I would spend some more time getting it right first by tracking every penny you spend for 30 days. For the $3 coffee to the $1500 mortgage payment. I mean every penny. It simply buy a pack of the small note pads from the dollar store and put it in your purse or back pocket. Better yet use the notes app in your phone to record it. My experience though is your more likely to forget to record an expense in a app than an pad in your pocket.
Next, take how much you will need to retire (I encourage you to multiply the number you have by 1.25 but I will explain why later) and plug it into Makenzie Investments RRSP Calculator in the “Income Required in Today’s Dollars” section.
Here is some help with the pieces of the calculator.
Average Male Lives to X and average women to as od Stats Can 20XX