Upper Middle Class Retirement Income

A family of 4 which can rent a.

Upper middle class retirement income. However knowing your own projected retirement income from now throughout retirement and also calculating your future spending is the key to a secure retirement. That means you ll need to allocate a healthy sum to retirement savings during your working years or risk a downturn in your quality of life in retirement. Retirement income 2020 is only part of the equation. A single retiree doesn t just cut that amount in half.

The built in advantage of middle class income earners. You ll have a much harder time getting by on social security than would someone who is used to a lower middle class income. Today this would make a. An annual inhand income of 4 8 lacs.

According to a definition from the brookings institution the middle class comprises families with incomes between one half the median income and twice the median income. Pew research center defines middle class as those earning between 67 percent and 200 percent of the median income which works out to income between 39 560 and 118 080. Hence lower middle class status starts at approx 6 lacs annual income before taxes and savings. Pension plans provided retirement income for generations.

And certainly at the upper end of the middle class. Financial planners suggest that you need retirement savings that amount to 25 times your desired retirement income excluding cpp and oas if you want to keep spending that much for the rest of your life. Knowing about average retirement income 2020 is interesting and one way to benchmark your financial health. There s one inherent advantage that middle class income earners have over the high income crowd.

Why the multimillion dollar retirement is not for the middle class. I estimate that a bare bones but fulfilling middle class retirement for a single person in canada starts at about 33 000 a year for singles and 44 000 a year for couples. They manage to save some money for retirement. While a high income person may need 100 000 per year to early retire a middle income person may be able to do it on 40 000 or less.

Only savings are 80c ie 1 5 lacs for tax exemptions. Some also define upper middle class as those who are college educated with incomes in the top 15 roughly 100 000 or greater for households or 63 000 or greater for individuals.