Where are you?
Published in 2015, the American study The Real Deal by the firm Aon Hewitt presents specific indicators adapted to the saver’s age so that he can assess his progress on the long road leading to retirement. Thus, to be considered on the path to a comfortable retirement, a 35-year-old investor must have saved the equivalent of twice (2X) his annual salary. At age 40, the scale then climbs to 4.3X. Years,” says François Bernier, Director, Advanced Planning Techniques at Sun Life Financial.
This study indicates that you should save 17% of your annual salary annually, i.e., 5% from the employer and 12% on your own, from the age of 25 until the age of 65. years. “If you start saving at age 35, it is a quarter of your income (i.e., 25%) that you will have to put aside until you are 65”, nuance Mr. Bernier. It’s a big challenge, knowing that mortgage debt remains high at this age and that children can impose tuition and activity fees!
However, it is never too late to do the right thing! It is possible to successfully prepare for the desired retirement with proper planning, even late. “However, there are priorities to be determined and sacrifices,” adds Mr. Bernier.
“This study has the merit of giving a boost, of raising awareness that the status quo is not always acceptable,” he explains, giving the example of a client whose indicated scale suggests that at 49, the man should have accumulated approximately the equivalent of 6X his annual salary. “However, verification made, he saved only 3.6 X,” said François Bernier. However, he is heading straight for the retirement of his dreams!
