The Average Income Of Retirees (and what they spend it on)

In this video we'll go through what the average retirement income is, and where you will spend that money.


Financial Resources I personally recommend:

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OUTLINE
0:00 - Intro
0:40 - Inflation
2:26 - Average Income
5:40 - Budget Allocation
9:36 - Income Sources

This presentation is intended for information purposes only and does not constitute an offer to buy or sell our products or services nor is it intended as investment and/or financial advice on any subject matter. Every effort has been made to ensure the accuracy of its contents. Certain of the statements made may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Returns are not guaranteed and past performance may not be repeated.
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DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.

[GarryMurray-iy]

Cpp and oas should not be taxed. At least for most retired people. This is something that could help so many seniors at least somewhat enjoy their retirement. Not many are so fortunate to have saved over a million like some previous posted stated they have. Good for you, you’ve done well but the large majority don’t even have anything close to a million plus saved. Let’s be realistic

[rexertek]

I'm approaching retirement and have found your videos very beneficial. This video is one of the most beneficial. Thanks for posting!

[mavrick]

I think your advice on establishing what you spend your money on currently, is not only necessary but what an adult should do. If you have no idea what you are spending your money on, then how can you possibly figure out what you need when you retire? When I broached this subject with my sister she said, "We spend everything we bring in - period. What good would it do for me to write down every coffee or bag of chips?" When my husband and I did a budget (itemized our spending) before we retired we were shocked at what dumb things we were spending our money on. Like buying magazines off the rack, when signing up for a subscription was $15 cheaper. Or paying for TV subscription services we never used. Or how much we spent on dry cleaning our clothes - which we wouldn't need to do when we retired. It helped us enormously in determining what we would need or want when we retired.

[lukehaswell]

Most jobs are losing value daily with massive layoffs, Last year I was working full time budgeting groceries, unable to afford date nights, and missing time with my kids just to make extra money. These days I learn how to make money online, Using my job to finance my goals, You can't be an employee forever everyone should know by now, making extra cashflow interest everyday or weekly should be the goal now.

[cdnJGSL]

Of how many clients are single? Would be nice to have some resources for single person, they can have as much as what the average retirement income for a couple (a household can have population of just one) do, but from tax perspective they seem to pay more taxes alone potentially leaving less net income than a couple situation.

[ghostflight]

As a CFP on the other side of the country, just wanted to say thanks for putting out good info. You guys do a good job. Cheers.

[odizcvw]

Good advice.
I was one of those 5% that had a budget for the last 15 years while working. It is easy and really helps set you up for success. Just list what you spend. Some items are simple little recurring items like mortgage, taxes, utilities, insurance, car expenses, hair cuts, glasses etc. I used a big swag for food and entertainment. Another for hobbies. You'll never add up every food bill including starbucks, groceries and fast food. But it becomes the default shocking big number that is the missing difference between expenses and income.
But just knowing the truth about how you spend is vital to retirement planning in comfort.
Nothing really changed in retirement. Sure, commuting costs evaporated, but hobbies picked up. Covid wiped out our go go years, so we have more money than expected. But that is ok.
Knowing how you spend, it became a natural step to plan how to manage retirement income and spending. When to take RRSP to minimize taxes. Will there be claw back forced when RIF minimums force you into hirer than necessary income. Will you continue to save into TFSA (yes). What will be your net tax burden. It is all predictable and makes for a stress free retirement.

[cm]

Pay off your house BEFORE you retire- Period!!!!

[soniak]

we lived for about a year on our retirement budget for a trial run...kept notes/month and adjusted as needed.

[theophilusdsilva]

50 percent of retirees don't even get 1000 for single and family may be 2500. You talking only behalf of Rich Canadian retirees.

[marilyncrowley]

We married in ‘69 and began saving 1/4 of our mutual income. Investing in our first modest townhome, we prioritized paying down our mortgage which a couple of decades later really paid off with a significant job loss.
Much later in ‘98, I told our real estate agent in our new location that we wanted to “live in our piggy bank”. Thus we purchased a “dump” (according to my sister) instead of a regal stone house downtown. However, our now much-renovated, very comfortable house is extremely valuable due to its waterfront location, much more than the showy stone houses. Might I mention that it’s also mortgage-free…
Although not necessary, we live totally on our pension & Canada pension income. Last year we took our two offspring, plus wives and g-kids, to the French Alps for over a wonderful week.
You must decide what’s important to you early in life - we chose substance over “show”!

[BusterDarcy]

We want to have $120k/y in today’s money when we retire 11 years from now at 55, lasting us til 95. I’ve calculated this at needing around $3.5M come R day, and so far it looks like we’re on track to make it. The amount of our income we put away each year without batting an eye, while we live in a modest home, drive a modest car, and take modest vacations would probably not fly with most people. But I’d rather retire early and comfortably and know everything in life is taken care of til the end than splash out today just because we can.

[AMG-BENZ-]

As a couple, we’re into the 100K income in retirement. Zero debts, own a house and a condo as our secondary residence. Yet we still follow a monthly budget. Always have and always will. IMO, it’s not only about how much you ultimately have in retirement, but how predictable and realistic it can be to live out your 3 retirement phases with what you actually have in hand.

[DaveG-rsxp]

Retiring next year and Adam I very much appreciate you and your team's videos. An interesting perspective on how much income you need in retirement.

I think the downsizing from 2 cars to 1 car is sensible and something my wife and I will discuss. Apart from Uber (not an option where we live - taxi), for slightly longer car trips renting a car (need a pickup only occasionally?) is also an option vs owning the 2nd car 'just in case'.

My bank provides a very useful monthly summary of our household spending (all our cards and accounts with the same bank) so that quickly allowed me to build a budget showing spending for the categories you list for the last year with detail from a deep dive into statements from things like utilities and car and housing related ongoing costs. A useful short-cut likely available to many Canadians.

[wildhorses]

Grey Divorce is a huge issue here in USA. Not expected and divorced in late 60's places us in poverty. With health issues it is not possible to work again. Maintaining my home and health are priorities, travel and any leisure activites that cost money are out of the question, even food is minimal for the first time in my entire life. I am too embarrassed to go to Food Banks.
It is an unfortunate financial Stressor.
I am in my 70's and did not expect this.

[ronwiebe]

Another great video ! this is such great free content, I hope people are taking advantage of it.

[dangrather]

I paid off my house 15 years ago. Half my pay went to the mortgage and I lived off the other half. When the mortgage was done I did the same but put the other half into investing. I only made about $90 000 a year.
Basically I’ve been living well off half my salary for 30 years so I figure I’ve had a good practice run at living off $45 000 a year.

[maryslapsys]

This is another place where leveraging your tax payable can assist in increasing your income to help meet budget requirements.

[jankowalski-etxc]

Most of my retired friends get between 1.8 - 2.4k net per month per individual. And they look poor to me - especially the ones that are single. The ones that are single have to do some part time work. If they want to maintain a car, and go south once per year - and even that is hard living in Ontario. The ones that left Canada - are doing usually much better financially. and can afford more. Canada is expensive and you get less for what you pay. Also general standard is going down. Crazy people are everywhere cities are dirty and clogged up with traffic, bike lanes and construction. And I see young people in their 20-s and 30-s that instead of being at work - are lining up for free stuff at a foodbank. It is sad to watch Canada go down the hill. And every year looks worse. I see a lot of retirees and kids - leaving this country for Europe and the US.

[troyboyd]

Stats Can's most recent (2021) data says that the average total income for individuals over age 65 was $44, 300/yr. Federal and provincial taxes amounted to about 25% of that, so about $33, 225/yr after tax, or $2768.25/mo take-home. Most of those folks would have been retired. If yours is better than that, you're doing good. Half the population lives on less than that...