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Retirement planning: Amount you need to save in 10 years to create a Rs 10 crore retirement corpus https://lnkd.in/gjMTy5UE

The primary goal of retirement planning is to accumulate enough money to lead a comfortable life once your monthly paychecks stop coming.    HOW MUCH IS “ENOUGH?” The magic retirement number will differ based on factors such as your monthly expenditures, how many dependents you have, and where you live.  What is the average RRSP balance at age 64?  According to a Ratehub report, Canadians aged 55-64 have an average of $150,000 in their RRSP. (A Registered Retirement Savings Plan (RRSP) is a retirement account that helps you reduce your tax bill each year. Contributions to an RRSP — up to a certain amount — are exempt from taxes until the amount is withdrawn from the plan. For instance, an individual earning $100,000 each year can contribute up to $18,000 annually to an RRSP, reducing her taxable income to $82,000.) HOW’S THAT WORKING FOR YOU? TFSA (Tax-Free Savings Account) savings for the same age range average $21,000. HOW’S THAT WORKING FOR YOU? All told, Canadians between the ages of 55 to 64 can have an average of $300,000 in total retirement savings IF they save. HOW’S THAT WORKING FOR YOU? Is $300,000 enough to retire in Canada? The Canadian government also has a couple of pension plans, such as the Canada Pension Plan (CPP) and the Old Age Security (OAS), that provide additional income in retirement. The average CPP payout in October 2024 for a 65-year-old starting the payment is $815, while the maximum payout is $1,364.60. Additionally, the maximum monthly OAS payment stands at $718.33. These only apply if you work full-time until age 65.   If someone with the maximum CPP and OAS payouts invests $300,000 in guaranteed income certificates offering a 4% yield, the total annual interest payout would be $12,000. If we combine the two retirement benefits with the GIC investment, the maximum annual income would be around $37,000, which may not be sufficient for most retirees.  HOW’S THAT WORKING FOR YOU? "Let me help you change that 🤝 " 

Retirement planning: Where should I invest to create a retirement corpus of Rs 10 crore in seven years?

Understanding CPP and OAS and how they work is essential for effective retirement planning. These benefits are key pillars of Canadian retirement income system and on Jan 1 of this year, a 4.7% payment increase was implemented thanks to inflation indexing and the CPP enhancement which was increases substantially over previous increases. These changes will be instrumental in helping the financial security of future retirees. It is important for employees to be informed of these changes, as they can influence retirement strategies. At MultiCare Benefits Group, we emphasize the importance of incorporating both government benefits, your workplace savings plans, and personal savings into your retirement plan. Relying solely on these benefits may not be sufficient for a comfortable retirement, therefore, it is crucial to implement effective retirement saving strategies both in the workplace and personally. Stay informed and plan ahead to secure a financially stable retirement. This document highlights key points about the enhancements to the CPP and OAS and emphasizes the importances of understanding these benefits.

Understanding CPP and OAS and how they work is essential for effective retirement planning. These benefits are key pillars of Canadian retirement income system and on Jan 1 of this year, a 4.7% payment increase was implemented thanks to inflation indexing and the CPP enhancement which was increases substantially over previous increases. These changes will be instrumental in helping the financial security of future retirees. It is important for employees to be informed of these changes, as they can influence retirement strategies. At MultiCare Benefits Group, we emphasize the importance of incorporating both government benefits, your workplace savings plans, and personal savings into your retirement plan. Relying solely on these benefits may not be sufficient for a comfortable retirement, therefore, it is crucial to implement effective retirement saving strategies both in the workplace and personally. Stay informed and plan ahead to secure a financially stable retirement. This document highlights key points about the enhancements to the CPP and OAS and emphasizes the importances of understanding these benefits.

While the Canada Pension Plan is a cornerstone of retirement planning in Canada, it's not a complete solution on its own. 😮 To truly thrive in retirement, integrating CPP with strategic investments can amplify your financial security. Here's how to make the most out of your CPP: ➡️Delay Taking Benefits: Did you know that delaying your CPP benefits past the standard age of 65 can significantly increase your retirement income? For every year you wait, you can boost your CPP payment by 8.4%. Over five years, this results in a 42% increase in your annual pension. Patience really does pay off!!! ➡️Create a Powerful Income Duo: Pairing your CPP with well-managed investments can create a dynamic financial duo. This strategy leverages the reliable income from CPP with the growth potential from other investments, providing you with a more robust and diversified income stream in retirement. ➡️Leverage CPP as a Safety Net: The guaranteed nature of CPP payments provides a foundational layer of financial security. This allows you to potentially take calculated risks with other parts of your investment portfolio, which could lead to higher returns. Knowing you have a steady CPP income can give you the confidence to explore opportunities that have higher growth potentials. Remember, while CPP is a significant part of your retirement plan, it's most effective when integrated with a broader financial strategy. If you're looking to maximize your retirement income and ensure a stable financial future, consider how your CPP can work in concert with other investments.⭐️ Interested in crafting a comprehensive retirement strategy that includes CPP and more? Reach out today, and let's create a plan that fits YOUR unique retirement needs and goals.💬✨💼

Retirement planning: Where should I invest to create a retirement corpus of Rs 10 crore in seven years? https://lnkd.in/gBgkmtg8

TNG eWallet Adds Principal Private Retirement Schemes To GOfinance TNG Digital has announced a new feature under the GOfinance segment within its own TNG eWallet, called Principal Private Retirement Schemes (PRS). It’s a bit like what Maybank announced back in April for its own MAE app. But as the name for this one suggests, the only goal here is to save up for retirement rather than any other purpose. The Principal PRS “are managed toward a particular target date year based on when the investor is expected to start withdrawing money from the port folio to support their retirement needs”. A minimum contribution of RM100 is required, but users will get investment options tailored to their individual retirement ages and goals. Principal Asset Management Bhd CEO Munirah Khairuddin | Image: The Edge Malaysia Mentioned in the press release is the Target Date Funds (TDF), which was launched by Principal Asset Management Berhad back in 2022. The Principal PRS is essentially the same thing being integrated into the GOfinance hub of the TNG eWallet. As such, the fund will do something similar to the TDF, which starts off with more aggressive strategies, and slowly moves towards more risk-averse strategies as the investor ages. To go with the RM100 minimum contribution, TNG Digital has said that PRS investments of RM100 or more before 31 December 2024 will be eligible for an additional reward of up to 8% per annum for 30 days. More broadly, the company says that “users can enjoy up to RM3,000 in tax relief”, up until the year 2030. You can find out more about this feature by heading to the FAQ page, and specifically Part 5 of said page, linked here. The post TNG eWallet Adds Principal Private Retirement Schemes To GOfinance appeared first on Lowyat.NET. https://ift.tt/m0CcEMt

55 years old is the peak age to start planning for your retirement – which may be too late to achieve long-held ambitions. Our recent analysis indicates that if a 30-year-old made a gross investment of just £20,000 each year into a pension scheme, they’d have a projected fund of £1,072,000 available at the age of 60. Waiting until they were 35 to start saving into a pension could mean a £268,000 reduction to their retirement fund. And a fifteen-year delay, starting contributions at age 45, could bring it down it by £676,000. The net result? Less money to spend in retirement, and less money to pass on to the next generation. Coupled with recent changes around IHT and pensions announced in the October Budget, delaying retirement planning may impact both Millennials and Gen Zs too. https://lnkd.in/gWhkf-st Calculations assume an average annual investment growth before charges of 4.60% each year and investment charges of 1.96% each year. Contributions are invested on the same day each year in a pension and are shown before charges are taken into account. These figures are examples only and they are not guaranteed - they are not minimum and maximum amounts. What you get back depends on how your investment grows and the tax treatment of the investment. You could get back more or less than this.

South Africa ranks 38th in the 2023 Global Pension Index, underscoring the need for improvements in retirement planning. Key strategies include better elderly support and the Two-Pot system to boost pension savings. These steps aim to secure a stronger financial future for retirees. #FNBRetirementInsightsSurvey2024 #LoveFNB