{"id":1456,"date":"2020-11-16T21:06:37","date_gmt":"2020-11-16T21:06:37","guid":{"rendered":"http:\/\/www.monarqueconseil.com\/?p=1456"},"modified":"2020-11-16T21:10:42","modified_gmt":"2020-11-16T21:10:42","slug":"is-the-70-rule-still-valid-for-retirement","status":"publish","type":"post","link":"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/","title":{"rendered":"Is the 70% rule still valid for retirement?"},"content":{"rendered":"<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-1452\" src=\"http:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2020\/11\/retirement-300x200.jpg\" alt=\"Retirement\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2020\/11\/retirement-200x134.jpg 200w, https:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2020\/11\/retirement-300x200.jpg 300w, https:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2020\/11\/retirement-400x267.jpg 400w, https:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2020\/11\/retirement-600x401.jpg 600w, https:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2020\/11\/retirement-768x513.jpg 768w, https:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2020\/11\/retirement-800x534.jpg 800w, https:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2020\/11\/retirement.jpg 1000w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>You have certainly heard that in order to enjoy a comfortable retirement, you will need 70% of your average gross income over the last three of your working years. Does this rule of thumb still apply in 2019?<\/p>\n<h2>The rule of the thumb<\/h2>\n<p>Calculation of defined benefit pension plan annuities (government employees), which are for all useful purposes life annuities: the annuity is calculated by averaging\u00a0 the gross earnings of the last 3 or 5 working years multiplied by the number years of contributions to the plan, times 2%, with a maximum of 35 years. 35 times 2% = 70% is the maximum of the pension.<\/p>\n<p>The 70% tends to justify the method of calculating the needed income for everyone come retirement time. But do you think someone who earns $ 20,000 a year can retire on $ 12,000 ($14\u00a0000 minus taxes)?<\/p>\n<p>A family of 4 will see it\u2019s cost of living decrease significantly come retirement time: the children will have left the nest, the house will probably be mortgage free, earning an income expenses will be eliminated, less clothes to buy &#8230; But those six months in Florida &#8230;<\/p>\n<p>On the other hand, a single person will not see his cost of living decrease by the same amount, but will probably have saved much more for his retirement.<\/p>\n<h2>If the 70% rule of thumb is dropped, what rule should we use?<\/h2>\n<h3><strong>A differential budget!<\/strong><\/h3>\n<p>Establish a budget using two columns.<\/p>\n<p>The left column represents the current year&#8217;s expenses. The right column, those of your first year of retirement. Some lines will be higher and some others, lower.<\/p>\n<p>Once this exercise is completed as honestly as possible, schedule a meeting with your financial security advisor. With him, you will be able to discuss subjects such as: at age 75, I will not have the same needs or the same ability to travel, what about inflation in all of this, selling of the house, my life expectancy &#8230;<\/p>\n<h3><strong>Analysing of your retirement income<\/strong><\/h3>\n<p>During this meeting, you will tackle the thorny subject: &#8220;how much will I need to save to enjoy a comfortable retirement? &#8221;<\/p>\n<p><strong>In conclusion: &#8220;One never starts too early to save for retirement! &#8220;<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You have certainly heard that in order to enjoy a [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1452,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23],"tags":[],"class_list":["post-1456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newletters"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Is the 70% rule still valid for retirement? - Monarque Conseil<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is the 70% rule still valid for retirement? - Monarque Conseil\" \/>\n<meta property=\"og:description\" content=\"You have certainly heard that in order to enjoy a [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/\" \/>\n<meta property=\"og:site_name\" content=\"Monarque Conseil\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/monarqueconseil\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-16T21:06:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-11-16T21:10:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2020\/11\/retirement.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"668\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gilles Larose\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gilles Larose\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/is-the-70-rule-still-valid-for-retirement\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/is-the-70-rule-still-valid-for-retirement\\\/\"},\"author\":{\"name\":\"Gilles Larose\",\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/#\\\/schema\\\/person\\\/037d31d9b57eed801e156cfdd7540594\"},\"headline\":\"Is the 70% rule still valid for retirement?\",\"datePublished\":\"2020-11-16T21:06:37+00:00\",\"dateModified\":\"2020-11-16T21:10:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/is-the-70-rule-still-valid-for-retirement\\\/\"},\"wordCount\":350,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/is-the-70-rule-still-valid-for-retirement\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.monarqueconseil.com\\\/wp-content\\\/uploads\\\/2020\\\/11\\\/retirement.jpg\",\"articleSection\":[\"Newletters\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/is-the-70-rule-still-valid-for-retirement\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/is-the-70-rule-still-valid-for-retirement\\\/\",\"url\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/is-the-70-rule-still-valid-for-retirement\\\/\",\"name\":\"Is the 70% rule still valid for retirement? - Monarque Conseil\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/is-the-70-rule-still-valid-for-retirement\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/is-the-70-rule-still-valid-for-retirement\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.monarqueconseil.com\\\/wp-content\\\/uploads\\\/2020\\\/11\\\/retirement.jpg\",\"datePublished\":\"2020-11-16T21:06:37+00:00\",\"dateModified\":\"2020-11-16T21:10:42+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/is-the-70-rule-still-valid-for-retirement\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/is-the-70-rule-still-valid-for-retirement\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/is-the-70-rule-still-valid-for-retirement\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.monarqueconseil.com\\\/wp-content\\\/uploads\\\/2020\\\/11\\\/retirement.jpg\",\"contentUrl\":\"https:\\\/\\\/www.monarqueconseil.com\\\/wp-content\\\/uploads\\\/2020\\\/11\\\/retirement.jpg\",\"width\":1000,\"height\":668,\"caption\":\"Retirement\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/is-the-70-rule-still-valid-for-retirement\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Accueil\",\"item\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Is the 70% rule still valid for retirement?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/\",\"name\":\"Monarque Conseil\",\"description\":\"Cabinet de Services Financiers\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/#organization\",\"name\":\"Monarque Conseil\",\"url\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"http:\\\/\\\/www.monarqueconseil.com\\\/wp-content\\\/uploads\\\/2017\\\/11\\\/Logo-Monarque.jpg\",\"contentUrl\":\"http:\\\/\\\/www.monarqueconseil.com\\\/wp-content\\\/uploads\\\/2017\\\/11\\\/Logo-Monarque.jpg\",\"width\":341,\"height\":147,\"caption\":\"Monarque Conseil\"},\"image\":{\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/monarqueconseil\\\/\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/monarque-conseil\\\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/#\\\/schema\\\/person\\\/037d31d9b57eed801e156cfdd7540594\",\"name\":\"Gilles Larose\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/caf9f8a2783cbe3e98cda5f5cc4a3c83f3d30996d5f45f14624bfc995b879ad8?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/caf9f8a2783cbe3e98cda5f5cc4a3c83f3d30996d5f45f14624bfc995b879ad8?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/caf9f8a2783cbe3e98cda5f5cc4a3c83f3d30996d5f45f14624bfc995b879ad8?s=96&d=mm&r=g\",\"caption\":\"Gilles Larose\"},\"sameAs\":[\"http:\\\/\\\/maisondigilor.com\"],\"url\":\"https:\\\/\\\/www.monarqueconseil.com\\\/en\\\/author\\\/gilles\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Is the 70% rule still valid for retirement? - Monarque Conseil","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/","og_locale":"en_US","og_type":"article","og_title":"Is the 70% rule still valid for retirement? - Monarque Conseil","og_description":"You have certainly heard that in order to enjoy a [&hellip;]","og_url":"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/","og_site_name":"Monarque Conseil","article_publisher":"https:\/\/www.facebook.com\/monarqueconseil\/","article_published_time":"2020-11-16T21:06:37+00:00","article_modified_time":"2020-11-16T21:10:42+00:00","og_image":[{"width":1000,"height":668,"url":"https:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2020\/11\/retirement.jpg","type":"image\/jpeg"}],"author":"Gilles Larose","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Gilles Larose","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/#article","isPartOf":{"@id":"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/"},"author":{"name":"Gilles Larose","@id":"https:\/\/www.monarqueconseil.com\/en\/#\/schema\/person\/037d31d9b57eed801e156cfdd7540594"},"headline":"Is the 70% rule still valid for retirement?","datePublished":"2020-11-16T21:06:37+00:00","dateModified":"2020-11-16T21:10:42+00:00","mainEntityOfPage":{"@id":"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/"},"wordCount":350,"commentCount":0,"publisher":{"@id":"https:\/\/www.monarqueconseil.com\/en\/#organization"},"image":{"@id":"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/#primaryimage"},"thumbnailUrl":"https:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2020\/11\/retirement.jpg","articleSection":["Newletters"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/","url":"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/","name":"Is the 70% rule still valid for retirement? - Monarque Conseil","isPartOf":{"@id":"https:\/\/www.monarqueconseil.com\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/#primaryimage"},"image":{"@id":"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/#primaryimage"},"thumbnailUrl":"https:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2020\/11\/retirement.jpg","datePublished":"2020-11-16T21:06:37+00:00","dateModified":"2020-11-16T21:10:42+00:00","breadcrumb":{"@id":"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/#primaryimage","url":"https:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2020\/11\/retirement.jpg","contentUrl":"https:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2020\/11\/retirement.jpg","width":1000,"height":668,"caption":"Retirement"},{"@type":"BreadcrumbList","@id":"https:\/\/www.monarqueconseil.com\/en\/is-the-70-rule-still-valid-for-retirement\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Accueil","item":"https:\/\/www.monarqueconseil.com\/en\/"},{"@type":"ListItem","position":2,"name":"Is the 70% rule still valid for retirement?"}]},{"@type":"WebSite","@id":"https:\/\/www.monarqueconseil.com\/en\/#website","url":"https:\/\/www.monarqueconseil.com\/en\/","name":"Monarque Conseil","description":"Cabinet de Services Financiers","publisher":{"@id":"https:\/\/www.monarqueconseil.com\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.monarqueconseil.com\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.monarqueconseil.com\/en\/#organization","name":"Monarque Conseil","url":"https:\/\/www.monarqueconseil.com\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.monarqueconseil.com\/en\/#\/schema\/logo\/image\/","url":"http:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2017\/11\/Logo-Monarque.jpg","contentUrl":"http:\/\/www.monarqueconseil.com\/wp-content\/uploads\/2017\/11\/Logo-Monarque.jpg","width":341,"height":147,"caption":"Monarque Conseil"},"image":{"@id":"https:\/\/www.monarqueconseil.com\/en\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/monarqueconseil\/","https:\/\/www.linkedin.com\/company\/monarque-conseil\/"]},{"@type":"Person","@id":"https:\/\/www.monarqueconseil.com\/en\/#\/schema\/person\/037d31d9b57eed801e156cfdd7540594","name":"Gilles Larose","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/caf9f8a2783cbe3e98cda5f5cc4a3c83f3d30996d5f45f14624bfc995b879ad8?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/caf9f8a2783cbe3e98cda5f5cc4a3c83f3d30996d5f45f14624bfc995b879ad8?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/caf9f8a2783cbe3e98cda5f5cc4a3c83f3d30996d5f45f14624bfc995b879ad8?s=96&d=mm&r=g","caption":"Gilles Larose"},"sameAs":["http:\/\/maisondigilor.com"],"url":"https:\/\/www.monarqueconseil.com\/en\/author\/gilles\/"}]}},"_links":{"self":[{"href":"https:\/\/www.monarqueconseil.com\/en\/wp-json\/wp\/v2\/posts\/1456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.monarqueconseil.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.monarqueconseil.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.monarqueconseil.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.monarqueconseil.com\/en\/wp-json\/wp\/v2\/comments?post=1456"}],"version-history":[{"count":3,"href":"https:\/\/www.monarqueconseil.com\/en\/wp-json\/wp\/v2\/posts\/1456\/revisions"}],"predecessor-version":[{"id":1459,"href":"https:\/\/www.monarqueconseil.com\/en\/wp-json\/wp\/v2\/posts\/1456\/revisions\/1459"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.monarqueconseil.com\/en\/wp-json\/wp\/v2\/media\/1452"}],"wp:attachment":[{"href":"https:\/\/www.monarqueconseil.com\/en\/wp-json\/wp\/v2\/media?parent=1456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.monarqueconseil.com\/en\/wp-json\/wp\/v2\/categories?post=1456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.monarqueconseil.com\/en\/wp-json\/wp\/v2\/tags?post=1456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}