Objective: Play this activity to determine how much money you may need when you retire.
About Retirement
Retirement is the period of your life when you have stopped working at a job, career, or occupation and do not plan to return to actively working. You should plan to have enough money available to pay for your living expenses.
To determine how much money you need for retirement, you have to consider how much money it will cost to maintain your lifestyle and how much money you will be receiving in retirement or have available in savings.
LIVING COSTS
The amount of money needed to support your lifestyle, including basic expenses such as housing, food, taxes, and healthcare. Your lifestyle determines your cost of living. Frugal means you live as inexpensively as possible. Comfortable means you meet all needs and many wants. Living well means you have some luxuries in your life.
PENSION
Pension is money you receive from the government or a former employer when you reach a certain age. Government pension money comes from a pension fund that you pay into while you are working. These payments are part of your employment deductions. Government pension is called Canada Pension in Canada. Some employers offer pensions to employees that meet certain requirements or service.
NET WORTH
Net Worth, also called equity, is the total worth of the things you own (your assets) minus all your debts (your liabilities). Or, you can think of it as the amount you would have left over if you sold all your assets and paid off every single one of your debts today.
How to Play
Retirement is the period of your life when you have stopped working at a job, career, or occupation and do not plan to return to actively working. You should plan to have enough money available to pay for your living expenses.
To determine how much money you need for retirement, you have to consider how much money it will cost to maintain your lifestyle and how much money you will be receiving in retirement or have available in savings.
LIVING COSTS
The amount of money needed to support your lifestyle, including basic expenses such as housing, food, taxes, and healthcare. Your lifestyle determines your cost of living. Frugal means you live as inexpensively as possible. Comfortable means you meet all needs and many wants. Living well means you have some luxuries in your life.
PENSION
Pension is money you receive from the government or a former employer when you reach a certain age. Government pension money comes from a pension fund that you pay into while you are working. These payments are part of your employment deductions. Government pension is called Canada Pension in Canada. Some employers offer pensions to employees that meet certain requirements or service.
NET WORTH
Net Worth, also called equity, is the total worth of the things you own (your assets) minus all your debts (your liabilities). Or, you can think of it as the amount you would have left over if you sold all your assets and paid off every single one of your debts today.
How to Play
- Enter values for each of the items. You may need to research cost of living and consider inflation.
- Review the numbers and experiment to see how they change.
- Use the PRINT button to print to paper or save as an electronic file (pdf). Write your name down on the printout if you will be submitting to an instructor.
- Use the RESET button to erase your data or start over.
PRACTICE
|