![]() Beyond that, track your expenses, put money into RESPs and RRSPs, cut down on unnecessary expenses like eating out, and switch from two family cars to one if possible. Roughly three-quarters of the respondents in the CPA Canada survey already contribute to their savings every month. Instead of daydreaming about a six-figure paycheque to fix that, Woolley says, it’s best to get ahead and start saving early. In fact, in a 2018 survey conducted by CPA Canada, 42 per cent of respondents said they plan to work past age 65 half of that group said they can’t afford to retire. ![]() “There are a lot of people in their 40s helping their kids go through school and who have no retirement savings whatsoever,” says Woolley. Still, what explains that disconnect? Panic, perhaps. The good news, he adds, is that “for two people each netting $56,000, the disconnect”-between what you make and what you think you need-“is not as big as it first seems.” “Unless you are living like a king, $10,000 a month is enough for even a couple to live very, very comfortably, assuming you don’t have debt,” he says. Most individuals can get by fine on nearly $5,000 a month, he says. Very few Canadians earn that much-nor do they need to. The quarter-million-dollar figure is delusional, says Hugh Woolley, a Vancouver CPA with Lewis & Company. After tax, that figure drops significantly (to $155,000 in B.C., for example), but it’s still nearly triple the $56,000 in after-tax income that the average Canadian makes. How much money do you need to make to feel financially comfortable? According to the Canadians polled by financial services firm Edward Jones, the magic number is-wait for it-$250,000 per person, per year. “Unless you are living like a king, $10,000 a month is enough for even a couple to live very, very comfortably, assuming you don’t have debt,” says Hugh Woolley, a Vancouver CPA (Illustration by Leeandra Cianci)
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