Once you retire, you could receive a pension under the Québec Pension Plan and a benefit under the Old Age Security program. If your employer offered a pension plan and you contributed to it, you could also receive a pension from your workplace pension plan. Therefore, is it really necessary to save?
To find out, you must first determine the percentage of employment earnings you will need to maintain your quality of life throughout your retirement.
It is important to know that the amounts from government programs
only replace a certain percentage of your employment earnings. The higher your income, the lower the percentage. Therefore, there is a good chance that personal savings will be necessary.
If your retirement plan is simply to live a long and peaceful life, you can aim for an income of around 70% of what you currently earn. This is a cautious goal, given that when you leave the labour market, some expenses will decrease (fewer work clothes to buy?) and others will increase (more outings to the cinema?).
However, retirement is often synonymous with dreams and projects to bring to life. Since these projects have a cost, yes, you need to save. But the real question is: how much should you save? Each person has their own answer. To find yours, take the time to think about your plans, then get help from a specialist. This person can help you set the right savings goals for you. You can also use
SimulR, a simple retirement income simulator tool.
Remember: if life events occur, such as a separation or buying a house, you will need to review your savings strategy. The same is true if new projects are added to your wish list!
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