I’m 40, here’s where I’m at for retirement…

[endquote]

I’m 40 years old with an income of $119,000 a year, household income is $203,000.

My wife has a pension through her employer and $39K in an RRSP that’s she passively investing $150 a pay into.

I have an RRSP worth $253,000 today and I’m investing $800 a pay into, about $19,200 as I’m paid twice monthly.

I can’t really afford to invest any more right now, we have three young children and after what we invest, bills and discretionary spending, there isn’t much left at the end of the month.

Our home is assessed at $759,000 and we owe $203,000 on it, bought in 2009 for $306,000.

Am I on track or am I screwed? I’d like to retire at 55 but realize that 60 or even 65 is probably more realistic. My spouse can get her full pension at 54.

 

[porphyrioskafsokalivitos]

@endquote You might not feel it but you are way better than most Canadians are at that age.

 

[annointedgirl77]

@porphyrioskafsokalivitos Yeah, after reading this I realize I am actually screwed in comparison. OP, you're doing just fine.

 

[yeshuaisgod]

@annointedgirl77 Yup. I’m with you! 10% older, 10% of the savings it feels like some days… only saving graces are my highest earning years are still ahead of me, working til 70 is possible, and probably won’t survive past 75 if family history tells me anything, so don’t need to fund that many years…

As for OP, $19000/year rrsp contribution if you have the room, plus the tax deferral that comes with it.. you’re doing what you can.

How many more years until the kids are grown up and on their own? How does that change things?

 

[swc1293]

@porphyrioskafsokalivitos Is OP richer than he thinks?

 

[writinggirl]

@swc1293 Most likely, a lot of folks are when they post on here and it's entirely understandable. They want validation

 

[micahissaved]

@porphyrioskafsokalivitos I'm OP's age and make half his income ($60k), so yeah

 

[holythunder3]

@porphyrioskafsokalivitos lol way better than most

 

[groundball]

@endquote If I had $250k in RRSP and home equity of about $500k at 40, I’d be pretty happy in all honesty. You could always do better but everyone can say that.

I honestly think you’re fine, especially with having 3 kids.

 

[shabach67]

@endquote Lol. Not even close to screwed.

 

[resjudicata]

@endquote Is this a troll post ? You sir will be good in the future and so will your kids.

 

[endquote]

@resjudicata It isn’t, it’s out of fear that I’m way behind where I need to be. I’ve heard that you should have 400K to 500K saved by 40…

 

[groundball]

@endquote Stop reading anything about retirement that is US based. Number one mistake that is made by Canadians is consuming American literature surrounding retirement and investment planning.

You don’t need to save $1million just to cover your healthcare costs in retirement like they do in the US. We have elder care costs only for the most part plus sustainable CPP and OAS unlike their social security.

Based on what you have, you’re golden mate! Once those 3 kids are out and gone, your house will be paid and you’ll be on easy street. Stick with your current plans as you’re doing more than fine and will have ample money in retirement.

Take away your mortgage bills and childcare costs plus savings costs. That’s your actual spending rate. Use that for your planning of retirement spending. You’ll see you’re only spending about $50k a year between you and your wife on food, normal bills etc. Your wife’s pension plus Both your CPP and OAS and you’ll be fine. Your RRSP and any other savings you have will be the extra spending stuff.

 

[tudor1485]

@endquote You have more than that. Your home has 550k equity alone.

 

[gioiamit]

@endquote you should aim to have your 40s as your highest earning years, ideally you can start throwing some money into a TFSA; come retirement it looks like you'll have your wife's pension + RRSP + CPP + OAS. which may not be enough depending on what your retirement to look like.

in your 50s you may have a period of needing to pay for post-secondary for your kids so your investments may need to pause or reduce for a bit.

 

[endquote]

@gioiamit We have $36,000 in an RESP for the kids education and a trust fund from my fathers estate which has a further $30,000 per kid invested. Might not be enough but I am predicting they’ll each have around 60K to use for education.

 

[gioiamit]

@endquote enough to put a dent into things which will help. doing your best to max out your TFSA's each year (and catch-up where possible) will be a good start. if you dont think you'll be able to retire at 55, that's perfectly ok - nothing wrong with working until 60 or 65 to nail down a more secure / comfortable retirement.

 

[dotty]

@endquote Stop investing in your kids education now. That's definitely enough. That's crazy lol.

 

[childofgod001]

@endquote I'm 41.. lucky if I can put $100mth away . No pension. About $9k in rrsp/TFSA. Your doing better than me. And my wife

 

[sagar1027]

@endquote I’m 40 and I just paid for takeout with my credit card