This question really depends on 3 factors which are unique to each person and family. We focus on goals based financial planning to help us answer the following questions.
1. At what age do you want to retire?
2. What is your desired income from all sources in retirement (government benefits, pension plans, registered and non-registered investments, rental income, annuities) and how do you envision your retirement lifestyle. All of this is further complicated by incorporating an indexing factor to protect the purchasing power of your income over a long period of time.
3. What rate of return will you earn on your retirement investment assets before and after retirement, what level of risk are you comfortable with and are you being as tax efficient as possible with your savings?
As you can see, there are a few moving parts in this calculation but there is one constant: the earlier you start the more options and opportunities you will have upon retirement.
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