Retiring With $500,000 vs. $1 Million: How Much Can You Expect To Spend?

Thank you! Can you tell us the assumption you made on return on investment annually on the scenarios?

This video refers to RRSP, TFSA and non-registered funds. Any company pension funds are in addition to this money. Correct?

I probably only need 0.8 I am way over that number, do I need to pull the trigger? I just want to do something instead of sleeping at home, anyway CRA is happy with my decision.

Did you include cpp? Otherwise is very high

$57,000 a year with only $500000. This does NOT add up.

Please include numbers for singles.

Thank you for these videos, I'm around 5-10yrs out, so starting to pay attention. 😊
Minor point you could include 'each' to make it clearer, ie. 'Both J and A each have $xxx'.
Also on the single front, or rather 'couple with one death', life insurance could through a huge curve ball into the equation... Both pre/post retirement.

Good video once again. I would have liked to have seen the numbers if CPP was drawn at 60 65 and 70. Its something like 96% draw CPP before 70. It would have been better if we could have seen what the majority of us do.

Im a bit confused by the math in this one. $57,000 / year at 60 means the only sources of income is that $1/2 million. No OAS until 65 and no CPP until 70. To get to $57 000 after tax means you have to withdraw close to 90,000 per year for the first 5 years..thats $450,000. By age 65.. and education would be appreciated

Love these comparisons! I'm curious why your scenarios (here and on others) usually have CPP starting at 70 but OAS at 65? Thanks Adam. Your open and honest instruction has been a god-send!

Well done and very informative 🤔

All the examples on this channel has been with $1 million portfolio.

Good video on the different amount of savings and the income you could expect... One might argue if you have a $1M in savings your CPP should be 100% but that would only put income higher. I will be sending this one to my brother as he has a stressful job and I believe he is approaching having too much in savings and should really start enjoying life a little more plus reduce his stress level so he can actually live to enjoy his hard work.

I delayed my retirement due to Covid. I figured that if I couldn't do much I might as well continue working and earn some extra money. I saved more than I need. Now 64, I had bought into the "you need to have $1 million to retire" that they told us years ago. "There will be no CPP". Well CPP didn't go broke. When I decide to collect I will be getting 94% of max CPP. I didn't know what I needed, what my normal expenses were per year. (don't count events like a new roof) I added it up and I was under $20,000. Now I am trying to figure out what to do with the money I saved. I wish I had planned, budgeted, instead of trying to save so hard. I should have spent more on myself when I was younger.

Very early retirement isnt looked at much. Can you do a vid showing sustainabilty of $500k saved at 40, 50, 60, 70 and retiring at those ages to show what type of income they'd have to live off of?

nice job, but i'm not sure why you integrated TFSAs into the scenario. i would rather just see the numbers for a RSP (RIFF).

For those who are curious and not familiar with investing here is a practical scenario: Actually it's a bit low but you can easily make $60,000 + year with income investing ETF with covered call statergy with medium risk. Here is an exemple $500,000 all into HYLD Yield of 12.33%* with monthly distributions average price in the past 6 Months call it $13.50 a share = 37,037 shares which pays $0.143 Dividend per unit per month like clock work so = $5,296.29 per Month X 12 = $63,555.49 for the year and we did not even factor in CPP or OAS 🙂. I hope this helps you a bit. Not financial advice just giving you a real life scenario that it is possible to achieve it. Good luck!

Having watched the entire video, the biggest takeway for me is that double the investment for couples, does not translate into double the retirement income. Not even close. Very instructive and helpful lesson.Even worse for singles - yes, he talks about singles.
Great content, thanks.

Fantastic vid, as always 😊. For everyone asking about scenarios, Desjardins offers a very good retirement income calculator that even lets you model work after retirement. Note: Be sure to use YOUR CPP or QPP

The fundamental question asked was how much does one need in retirement per year. I'm (single) retired with after tax of 80k adjusted till 95 years old. And, to my surprise, it's too much. I simply spend less.

It really really depends on whether the money is in TFSA or RRSP. My advice to my kids is to forget RRSP unless your annual income exceeds 100k. I regretted my RRSP contributions made when I was younger. There was no TFSA back then. Fortunately, our combined TFSA just clipped 375k today.

Given markets are again easily turning over 10% roi a 3% is basically banked returns. I would say this whole scenario is way too miscalculated. We all know most take cpp 60 oas 65 so stop saying 70.

I’d love for you to do a video for people who have a defined benefit plan plus some money in RRSP and TFSA.

What drives me crazy is when having these chats with coworkers and I mention "Pension/rrsp meltdown". They look at me like I am nuts. I tell them they are setting themselves up to HAVE TO PAY CRA more in the long run - especially because they don't understand at some point they have to convert to a RRIF and they will be forced to take out certain amounts every year. The larger that fund, the more will have to be taken out whether they like it or not.They want to hold on to those funds as long as possible before using them. So yeah, I agree with Adam: You want to give more $$ to the CRA to burn? Have at it!

You have a good channel. I would hire you for fee based planning

Can you keep it in the XEQT and have a NET return by spending only a portion of the growth?

I rather retire from full time earlier and have less than working full time to 65. I know people that passed in their late 50s and early 60s so nothing is guaranteed in life.

Excellent!

Your the best, I hate when people don't discuss the single people . Thank you for this

Excellent video Adam. The information you’ve provided in this video very helpful. I know you used age 60 for this video and I’m now 63.5 so could get a ball park amount of if I had 500 k at age 65 ? About what I will have. Maybe a tad more

I'm new to this channel, what are these amounts invested in to generate the income shown?

Appreciate you discusing single person too. Thanks

Despite losing my job unexpectedly at the age of 39, with $425,000 saved for retirement, $10,000 in an HSA, and a house worth another $200,000, I'm looking for methods to supplement my income. What are some of the most promising alternatives?

My wife and I are scenario 1 in your presentation. How do you get to $57k a year from 500k ? That's 11+ percent a year compared to the recommended 4 percent. Confused. Thanks

Can you do a retire with bitcoin video ?

Sometimes it's difficult to make it in trading even with good tutorials as this many will struggle to make it.. not easy as it seems. I remember when I just got into crypto& stocks back in 2019 but later in 2020 I ended up selling it because I was dumb and I didn't understand it. I studied and learned and now I know how it works. Got back into crypto early in 2023 with 10k and I’m up with 328k in a short period of time.

I’ve been wondering the same thing. It sounds like a big gap, but with rising costs, I'm curious if $500,000 would really feel all that different. I’ve read that some people are spending more than they thought they would on things like healthcare.

Adam, how do individuals handle the difference between your plans' year end tax rate and the actual tax rate due to withholding taxes from financial institutions?
For example, if a retired couple takes out 48K each (4K month/person), the Withholding tax would be 30%, taken out each month. All of your our examples show people paying a much lower tax rate. I understand that when everything is eventually calculated (with refunds, etc.) the results are accurate. But, until the couple receives their refund (the following year), they have effectively lived with less income (than the plan said they would get) throughout the year. Do they simply withdraw more from RRSP/TSFA (to make up the delta) during that 'First' year, and use the refund to make up short-falls (due to withholding taxes) for subsequent years, going forward? Hope that makes sense.

The gov't really needs to do something that helps single people in retirement since they can't income split. What, I don't know exactly.

It's very interesting that $500k saved = $91k annually. Double that to $1M saved and the annual is only 30% more? What is the main reason for that... why isn't it's closer to $180k annually? Also... I keep seeing this, you start with $1M in retirement and your estate at age 95 is.... $1M? Whaaaaat ?

How about a scenario where you have defined benefit plan from employer + CPP and OAS, single, and your investments are mostly TFSA and Non Reg, and RRSP is not the biggest contributor like in your scenario. And the person is a dividend stock investor. I think that might be important because the cash flow can be mostly from the dividends and less draw down from principal.

My husband was diagnosed with muscle invasive bladder cancer at 58…just turned 59. 38 years service with his employer. He worries constantly about retirement. So much so that he is paralyzed with fear. We didn’t figure on cancer derailing our plans. Should he retire? Can he retire? Do we have enough? No one talks about this. 😢