Situation: Couple with five of eight children still living under their roof wonder if they can retire
Solution: Maximize private savings, continue frugal ways and eventually they’ll get there
A couple we’ll call Jack, 60, and Susan, 52, live in Ontario. They have eight kids, three of which are independent and five of which live at home, including three still in primary school. Jack, a civil servant, has a pre-tax income of $96,000 per year and adds almost $14,000 per year from the Canada Child Benefit, a sum which will plummet as the children approach the cutoff at 17. Susan is a homemaker. A basement suite adds rent of $10,800 per year. Their take-home income works out to about $7,300 per month including rent and the untaxed CCB. Despite the large family, Jack and Susan are frugal and are able to save $3,400 per month for retirement and rainy days.
Family Finance asked Derek Moran, head of Smarter Financial Planning Ltd. in Kelowna, B.C. to work with Jack and Susan. “This is as traditional a family as one can find,” he explains. “The issue is whether they can retire this year or next with children in primary school still at home.”
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