@calmmoneycoach: THE REPLACEMENT RULE Your real retirement number is 41 percent, not 70 I took an $80,000 paycheque apart. Here's what actually continues. Five banks put 70 percent on the front page. It has no source. The part I couldn't fit in the video, and it's the best part. Statistics Canada actually measured this. LaRochelle-Côté, Myles and Picot took a real cohort of Canadians aged 54 to 56 in 1983 and followed them in tax data all the way to 2006. Not a survey. Not a model. What actually happened. Achieved replacement rates in their mid-seventies, by pre-retirement income quintile: Bottom quintile, about 1.10. Middle, about 0.75. Top, about 0.70. Read that again. Real Canadians replace a smaller share of their income as their income rises, and the lowest earners replace more than 100 percent of theirs. The 70 percent rule points the wrong way for almost everybody it's aimed at. Who pushes it here: TD, CIBC, RBC Insurance, Manulife, Scotiabank. Who doesn't: BMO uses no such rule, and Sun Life rejects it outright and says its own data found retired Canadians living on 62 percent. The federal government never endorsed it either. FCAC names no percentage and the Canadian Retirement Income Calculator has no 70 percent default. Malcolm Hamilton, the actuary, put a table on it in a C.D. Howe paper back in 2015. Childless couple who never bought a home: 69 percent. One earner, three kids, house kept until death: 42 percent. Same house sold at retirement: 27 percent. Two honest limits on the video's number. It assumes maximum CPP, which takes roughly 39 years at or above the ceiling and most people don't get there. And it assumes you're 65, because the age amount and the $2,000 pension credit both start there, and CRA is explicit that CPP and OAS don't qualify for the pension credit at all. Numbers are 2026. My model, my province, stated on screen. Run your own.

Brian | Calm Money Coach

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Region: CA

Sunday 06 September 2026 14:46:44 GMT