How to measure your financial health
By Gordon Powers, Sympatico / MSN Finance
As the country’s economic outlook continues to darken, more and more and more people are really starting to fret about their retirement – at least until they get there.
Research from Russell Investments Canada suggests that 10 years from retirement, roughly two thirds of Canadians admit to worrying about outliving their money, but only one in five retirees were still worried 10 years into their retirement.
Maybe they weren't as poorly off as they thought.
To help you obtain an early assessment of your own financial wellbeing, Russell looked at 11 different elements. The result is the Russell Financial Health Index, an easy-to-use tool that lets you gauge your own financial health and compare it to investors across the country.
Each score is a result of analyzing variables that include physical health, personal finances, and retirement readiness. For instance, now that you’ve had a taste of a bear market, you’ll be asked to gauge how prepared you are to ride out future changes in your investment performance before and during retirement.
If this all seems too serious though, have a look at the Pudding Index, a straightforward tool that compares your retirement savings to a benchmark account designed to replace roughly 50 to 60% of your final pay upon retirement at age 65. A score of 100 or more suggests you’re doing just fine; a lower score suggests that you might be falling behind.
If you're in your mid-20's, you can hit the 100 mark with a retirement plan balance of just 10% of your annual pay. But someone in their 60's will need close to seven times their salary in the till to stay above 100.
Where are you on the scale?
Posted by: Affacturage | Jul 13, 2021 1:16:02 AM
I learned a lot about economics through this blog. A well-written reminder to all about the impending issues that we are all going to have to deal with (or are already dealing with) in this country in the years to come.
Posted by: armlecker | Jul 14, 2021 6:25:33 AM
G.Powers comment [s ] are very good , but I only pick of what is usefull to me .It is like a Buffetdinner to me . If you eat everything which is offered and get a heartburn later , don`t blame the Writer for this but yourself .I myself learned early in life about these things .It worked for me .One is thinking the light at the end of the tunnel is the solution of getting ahead in life .But mostlikely a train facing you .therefore think of what one is doing ,than doing things before one thinks!. We do have a brain .Use it .