Planning for retirement : Planifier sa retraite : les Canadiens épargnent-ils suffisamment?

The Canadian Institute of Actuaries, in an effort to understand and share the implications of this group moving into retirement, has worked with the University of Waterloo’s Department of Statistics and Actuarial Science to assess the financial preparedness of those planning to retire in 2030. [...] The research project and the dissemination of its conclusions provide evidence of the value of actuarial science in decision-making and long-term planning, and the commitment of the profession to the public interest. [...] For each of the 72 profiles, we identified the main sources of retirement income in 2030, based on current average levels (using recent historic data and reasonable projection assumptions), and projected expenses in 2030 for necessary living expenses, based on an analysis of the amount of these expenses for the years 1998 – 2003 and 2005 and the trend in the data to 2030. [...] OAS is dependent on the period of Canadian residency and C/QPP are dependent on the number of years of participation in the plan and the level of earnings while participating. [...] The following table shows the annual savings, for a 40-year-old, from all sources, for the 25 years prior to retirement at age 65, to supplement the OAS and C/QPP in order to be able to meet the necessary expenses, assuming that an investment return of 1 percent more per year could be achieved (compared to Table 2, which illustrates the base case).