Checklist: Retirement Income and Expenses
3 min readBrought to you by Sound Choices - AGF Education for Investors and Advisors
To achieve the retirement you want, you’ll need to arrive at an accurate estimate of how much you will earn - and how much you will spend. Use this simple checklist to figure out which income sources and expenses apply to you.
Retirement income sources
- Group or individual Registered Retirement Savings Plan
- Registered Pension Plan
- Registered Retirement Income Fund
- Tax-Free Savings Account
- Non-registered investments (e.g., mutual funds, guaranteed investment certificates, Canada Savings Bonds)
- Savings or chequing account
- Money invested in your home (if you plan to sell before you retire)
- Government sources (e.g., Canada Pension Plan, Quebec Pension Plan, Old Age Security, Guaranteed Income Supplement)
- Company pension plan
- Post-retirement income (if you plan to work in retirement, earn rental income, etc.)
Post-retirement expenses
- Mortgage/rent
- Property taxes
- Utilities (e.g., gas, hydro, water/sewage)
- Home services (e.g., phone, cable/satellite/streaming, internet)
- Home maintenance
- Home insurance
- Groceries
- Car payments, including gas
- Car insurance
- Car maintenance
- Other transportation costs
- Health and dental insurance
- Life insurance
- Health care costs not covered by insurance (e.g., certain prescriptions, orthotics, eyeglasses)
- Travel and leisure
- Entertainment (e.g., dining out, books, magazines, movies, sporting events)
- Income taxes
- Charitable donations
- Miscellaneous (e.g., clothing, personal care products, gifts)
- Debt payments (including credit cards)
Once you’ve filled in this checklist, start thinking about how much you’re likely to earn or spend in each relevant category. Once you’ve done that, you can create an annual or monthly post-retirement budget.
You may spend 25 or more years in retirement, so remember to think about inflation, too. At an annual inflation rate of 3%, prices will double in 25 years.
Planning for retirement means having realistic expectations about how much you’ll earn and spend. This checklist may not cover all of your income sources or expenses. For more help in planning for your retirement, talk to your financial advisor.
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This material is for informational and educational purposes only. It is not a recommendation of any specific investment product, strategy, or decision, and is not intended to suggest taking or refraining from any course of action. It is not intended to address the needs, circumstances, and objectives of any specific investor. This information is not meant as tax or legal advice. Investors should consult a financial advisor and/or tax professional before making investment, financial and/or tax-related decisions.
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March 15, 2024