The maximum monthly Guaranteed Income Supplement allowance benefit you can receive in 2022 is $1,219.68 and the maximum Old Age Security payment you can receive is $642.25. So if you are receiving the maximum of each benefit, you may be wondering if that is enough to live off. Even if you receive the maximum of both benefits, it may not be enough to live on. For many people, this would represent a large reduction in their lifestyle. GIS and OAS are best thought of as a part of retirement planning, not the entirety of it. Experts always recommend investing as early as possible so that you do not have to rely on government benefits to cover necessities in your older years when you are supposed to be enjoying life. We will help break down some quick numbers when it comes to investing and retirement. Good to know A basic rule of thumb is that you will need about 70% of your current income to maintain your current standard of living in retirement. If you make $100,000 per year today, you should plan to have about $70,000 (in today’s dollars) per year in retirement. When you take inflation into account, that dollar amount will need to be higher once you retire. Even if you have little to no debts such as mortgages or car payments that you pay when you retire, those savings are often partly offset by increased spending on other things, like golf or travel. Using the example above, an individual at age 65 would receive about $16,140 per year using GIS and OAS which is well below the required $70,000 per year at retirement. The Guaranteed Income Supplement and Old Age Security are helpful benefits but will leave most Canadians with a significant retirement income gap. If maintaining your current standard of living throughout retirement is important to you, government benefits alone will not help you meet your retirement goals. A retirement nest egg can get you the rest of the way. There are a few great ways to invest. If you like a hands-on approach an online brokerage or robo-advisor may be right for you. For other investors, we recommend working with a financial advisor. Start working with a financial advisor today