Saving for retirement has never been easy. In the days when private and public sector employers offered generous defined benefit (DB) pensions, that didn’t matter as much. But today, with private sector DB pensions all but extinct, you really have to save if you want to retire comfortably.

If you’re a government worker with a very generous pension plan, then perhaps that doesn’t apply to you. But if you’re like most Canadians, you’re really going to need some savings to retire. According to most experts, the average Canadian needs about $750,000 to retire today.

If you still have a ways to go before you retire, you’ll need more than that, because inflation reduces the purchasing power of a dollar. In this article, I’ll reveal three ugly truths about retirement in Canada–and what you can do to manage them.

CPP and OAS don’t even cover rent in Toronto

It’s well known that CPP and OAS don’t cover most retirees’ living expenses. According to Wealthsimple, the two benefits combined pay $1,608 a month on average. If you’re on the low end of CPP, you might only get $1,240 combined. You don’t need me to tell you that $1,240 won’t cover your cost of living. What may surprise you is the fact that these amounts don’t even cover rent in Toronto anymore. According to rentals.ca, the average rent in Toronto among all property types was $2,021 in June 2020. CPP and OAS won’t even cover that on a pre-tax basis!

Read more @Yahoo Finance