The next step is to calculate your projected retirement expenses based on the lifestyle decisions you've made to date.
Getting started
Using your Annual Retirement Expense Worksheet, determine expenses that will likely stay the same and those that may change after retirement.
Estimate these amounts, factoring in any changing needs, activities and patterns you've identified.
Don't worry about being too precise in your estimates - the objective is to give you an idea of how your projected expenses stack up against your retirement revenues.
Accounting for Inflation
The Annual Retirement Expense Worksheet includes an additional calculator designed to adjust your results for inflation.
Although inflation has not presented a serious problem in Canada in recent years, even a modest annual increase can have a serious impact on your buying power over time. It's a good idea to account for it now.
