By Marie Engen, Boomer & Echo

Special to the Financial Independence Hub

I’ve given you the challenge of thinking about what sort of retirement lifestyle you want to have. You’ve also determined, as well as you can, what income you may be likely to receive when you retire.

It’s quite frustrating to try to figure out how much money you will need for your desired retirement. How can you decide without having some idea of how much it will cost? Is dreaming of exotic vacations and travelling around the world on a 13-m yacht realistic? Or should you be thinking about reading a book on your deck? Many people have no idea what they’re even aiming for.

Since we all like to compare ourselves to others to see where we stand, here’s what the average retiree spends for three different levels of retirement lifestyles:

(Sources: BMO retirement survey and the Government of Canada).

Basic – Low Budget

Canada makes sure that seniors don’t live in extreme poverty. A 65-year-old couple who each receive average CPP payments ($640.23 per month) as well as Old Age Security and Guaranteed Income Supplement would receive a little over $32,000 per year. A single 65-year-old would get just over $19,000.

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