People tend to spend differently depending upon their stage in life.
Everyone knows that it costs more to raise a family and buy a home, but as the children move on and you pay off that mortgage, household expenses tend to fall.
$66,800 – average total expenditure of individuals in all households
$56,500 – average total household expenditure for people between 55 – 64
$37,700 – average total household expenditure for people between 65 -74
$30,900 – average total household expenditure for people over 75
Based on those levels of spending, people would need the following percentages of their pre-retirement income:
67% – for people between 55 to 64
55% – for those between 65 to 74
40% – for people 75 and older
Source: Statistics Canada