Sorry if this has already been posted, but does anyone use the 4% method? It’s the simplest method for people like me (not a financial planner, and not really good with this type of stuff).
So basically you take what your expected expenses are for your first year of retirement. Subtract your income (pension, CPP) and whatever the number is, that should be 4% of your total retirement savings.
At least I think that’s how it goes.
So if I expect to spend $60,000 per year and have $10,000 pension my expenses are $50,000
I would need $1,250,000 to retire.
Seems like a simple formula, like retirement for dummies like me.
The hard part is saving enough. Especially with kids and a mortgage.
