would you be able to retire on RRSP alone?
Show HN: Income/savings calculator for moving to Canada
51–58 of 58 posts
Re: Show HN: Income/savings calculator for moving to Canada
#52Your federal and provincial income taxes are way too low. If you click on the link below, you'll see BC has an average tax rate of 25.8% on 100K. https://neuvoo.ca/tax-calculator/Ontario-100000#:~:text=%245... . Taxes are killer in the Great White North.
I am pretty sure I pay more in Oregon when you include healthcare expenditures. State income tax plus federal plus fica plus monthly premiums for spouse and kiddo ads up to a huge chunk of my take home (over 35% of my gross earnings).
Ya, I was pretty surprised as well. I expected Canadian taxes to be much higher, but they seem to be fairly competitive actually, especially when you factor in other costs as you pointed out. Overall, the biggest detriment appears to be the massive salary cut you would have to take, and less so the taxes.
Re: Show HN: Income/savings calculator for moving to Canada
#53would you be able to retire on RRSP alone?
you would retire on RRSP + CPP (very small) + whatever you currently have in your 401k + whatever you have in retirement savings from any other country(ies) you have lived in.
That said, depending on your age, with a max RRSP contribution of 27k, if you can contribute the max for 20yrs, you should have enough to retire on RRSP alone, assuming reasonable retirement living.
Assuming you contribute $27230/yr for 20yrs, and manage to get 5% growth on that account each year, you would end up with about $1m in the RRSP. It all depends on how much time you have to grow the account I guess.
Re: Show HN: Income/savings calculator for moving to Canada
#54Your federal and provincial income taxes are way too low. If you click on the link below, you'll see BC has an average tax rate of 25.8% on 100K. https://neuvoo.ca/tax-calculator/Ontario-100000#:~:text=%245... . Taxes are killer in the Great White North.
> Taxes are killer in the Great White North. Fortunately this pays for an extensive social security network including health care (though sadly not dental!)
It is a nice place to raise a family.
The motto of Canada is “Peace, order and good government,” which is in stark contrast to America’s “Life, liberty and the pursuit of happiness.”
Re: Show HN: Income/savings calculator for moving to Canada
#55It's more important for everyone who's are going to plan to move to Canada
Without saving and income calculator it is very difficult
Re: Show HN: Income/savings calculator for moving to Canada
#56would you be able to retire on RRSP alone?
you would retire on RRSP + CPP (very small) + whatever you currently have in your 401k + whatever you have in retirement savings from any other country(ies) you have lived in. That said, depending on your age, with a max RRSP contribution of 27k, if you can contribute the max for 20yrs, you should have enough to retire on RRSP alone, assuming reasonable retirement living. Assuming you contribute $27230/yr for 20yrs,…
One thing to keep in mind is RRSP is a tax shelter at time of contribution. You avoid paying income tax now, but you still need to pay income tax on withdrawals during retirement. For pretty much everyone their "salary" will be lower in retirement since things like houses are paid off and expenses are just lower, so you'll pay a lower marginal rate overall (plus you get the income tax back so you have more capital to build from)
Another thread pointed out it's a max contribution of 18% of last year's income (which is then limited to 27k), so you need to make around $150k CDN to make the max contribution.
TFSA works the other way. It's a tax shelter for growth. You've already paid income tax on the capital, but don't pay any tax on gains you manage to make when you withdraw. If you withdraw below the contribution limit you can top it back off as well, so a TFSA is a good place to save things like house and car down payments (though it's even better if you have enough money to just leave it alone).
Re: Show HN: Income/savings calculator for moving to Canada
#57Nearly $5,000 /yr for medical, vision, dental seems quite high. Where is that default coming from?
it was a guess based on numbers I polled from someone I know, then I just multiplied it by 3, for a "family of 3" as indicated in the comments. If you are willing to provide a more accurate number, I'll include that.
If you're going by individual anecdotes, I can add mine.
~$200 for glasses in the last 5 years. Everything else covered by either basic government coverage or group employee insurance.
Re: Show HN: Income/savings calculator for moving to Canada
#58Not a UI expert, but a dropdown beside the grey boxes that expands to show the actual calculations would be nice.