Average Median Income of a RETIREE!

let's talk money one of my very favorite subjects if you know me you know that i'm all about the money but in the last i'm gonna say at least five years i don't think i went an entire month maybe not even an entire week without looking at our retirement finances without figuring out our net worth without projecting our future retirement income that's the way this poor weird brain works so today let's take a look at the net worth and i think more importantly the average median retirement income for a person both in canada and the u.s for a 65 year old retiree i'm maureen dabranski and this is life starts at retirement where we make your retirement remarkable i produce a video every monday and the first monday of the month i produce a money minute monday video where i share with you a money tip in 10 minutes or less [Music] so when we retire really our financial game changes for the last 30 or 40 years you've been saving you've been putting away money you've been investing and now that whole picture changes we need to look at money now as a source of income something for you to live on and that was a big eye-opener for me i remember the first time that i took some money out of my rrsp i almost threw up i was i was i was um i couldn't believe how upset i was i was not prepared for that emotion i had a real difficult time taking money out instead of seeing it grow but this is how the financial game changes for those that enter retirement and for many of us we just need to be prepared for that change of mindset so before i share any numbers i want to say that i'm going to be sharing the median net worth and the median income the median simply means that there's an equal number of retirees with a higher net worth or income and an equal number with a lower net worth or income so this puts us right in the middle now let's also understand what i mean by net worth so your net worth is the value of all of the assets that you legally own such as your car your house minus all of your debts such as a mortgage or a loan so for these purposes for this video the calculation is really simple just total assets minus total liabilities is your net worth now the median net worth of a 65 year old retiree in canada is 543 200 so just over a half a million dollars and that's a healthy net worth but what surprised me is that since 1999 the debt of the average retiree grew so although it's almost 60 56.7 of senior-led families are debt-free in the latest study this rate was down from 72.6 in 1999 and over one in 10 senior led families or 12.1 percent still had a mortgage on their principal residence and that was in 2019 and that's a huge increase compared to only 6.6 had a mortgage in 1999. so i'm not 100 certain why i would think inflation i would think wages i would just think the overall cost of living is a little bit more difficult than it was in 1999 just something to be aware of now if you consider the exchange rate the net worth of someone in the u.s is actually less than in canada the median net worth in the u.s is 266 400 or approximately 335 000 canadian now i think one reason that maybe is because our american friends can write off the interest of their mortgage payments against their income so many of them don't focus as much of their time and energy and money to pay off their mortgages now although net worth is really interesting it really doesn't have tell us how we can live our lives income tells us that so let's look at the median after tax income of a 65 year old retiree in canada and that median income and i have to say i was a bit surprised at this it's 61 200 which is wonderful and the median income after tax for a 65 year old retiree in the u.s is 47 300 357 or just under 60 000 canadian so the income is very similar even though the net worth is a little bit different interesting my last word of caution is this isn't meant to make you feel bad if you are lower than the medium or does it make you to feel like warren buffett if you are above the median it's simply meant to open our eyes to judge less and to remember that no matter where you are on this scale we can always make your retirement remarkable i'm maureen dabranski and this is life starts at retirement please consider subscribing here and please join our facebook group at facebook.com groups slash life starts at retirement [Music] you

Channel: Life Starts at Retirement

Views: 233,401

Keywords: retirement, retired, retiree, retirees, retirementlifestyle, retirementplanning, oldagesecurity, oas, canadapensionplan, cpp, retirementinvesting, retirementincome, retire, tfsa, taxfreesavingsaccount, rrsp, registeredretirementsavingsplan, canadianretirement, retirement planning, retirement income, net worth, average income, baby boomers, retirement travel, retirement fear, how to retire, income in retirement, social security, retirement savings, life starts at retirement

Id: udoPHI0GcJA

Length: 6min 19sec (379 seconds)

Published: Mon Sep 12 2022