Modest, but enough: Two middle-class couples share their retirement budgets
The Toronto Star
23-05-21 13:00
A typical middle-class Canadian can live comfortably and enjoy a satisfying retirement on a modest budget, according to David Aston, a contributing financial journalist. In the Toronto Star, he identifies a couple ("Sheila and Tom") that can live on a spending budget of $58,000 per annum, while another couple ("Louisa and Allen") can live on $77,000. Both these outlays are based on the knowledge that the couples are free from mortgage or other liabilities. Moreover, being part of a couple enables a much better spread of cost across both people so that expenditure is reduced on a per-person basis. Aston says that when considering how much to spend on a retirement budget, individuals should start by assessing how they currently spend their money, allowing them to identify discretionary costs. If finances are tight, consumers can prioritize the wants, but should distinguish between wants and needs to establish a comfortable living standard for retirement. When considering retirement spending as a renter, the article suggests allocating $20,000 to cover shelter costs per year if renting a basic one-bedroom apartment and accounting for supplemental funds to maintain a decent standard of living according to Sheila and Tom's cost structure.