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Charted: Top 10 Retirement Planning Mistakes

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Top 10 Retirement Planning Mistakes

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When planning financially for the future, what are the most common retirement planning mistakes people make?

This chart uses data from the 2022 Natixis Global Survey, which polled 2,700 financial professionals across 16 countries between March and April 2022.

Most Common Retirement Mistakes

According to professionals, the most common retirement planning mistakes are time-related, like outliving savings or not understanding how inflation can affect a portfolio over time.

The number one mistake? According to 49% of financial planners, it’s underestimating the sizable impact inflation has on the value of retirement savings.

RankMost Common MistakesShare
1Underestimating the impact of inflation49%
2Underestimating how long you will live46%
3Overestimating investment income42%
4Investing too conservatively41%
5Setting unrealistic return expectations40%
6Forgetting healthcare costs39%
7Failing to understand income sources35%
8Relying too heavily on public benefits33%
9Underestimating real estate costs23%
10Investing too aggressively21%

Meanwhile, 46% of advisors see the underestimating of life spans as the second-most-common retirement mistake. The longer you live, the more retirement savings you’ll need to supplant income. And that’s not including the healthcare costs associated with aging, which 39% of advisors point out as another common retirement planning mistake.

Most of the other top retirement mistakes revolve around investment planning, including overestimating investment income (42%), investing too conservatively (41%), and setting unrealistic return expectations (40%).

On the flip side, 21% of retirees invest too aggressively according to financial professionals. While investing aggressively can be extremely beneficial especially in one’s earlier years, it can cause big problems later in life. That’s because later on, retirees need liquidity and must have access to their savings to cover life expenses. If a portfolio is volatile or not diversified, it may be hard to make up any short-term or sudden losses.

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Personal Finance

Mapped: Federal Tax Paid Per Capita Across Canada

We show which provinces and territories pay the most and least tax after adjusting for the number of tax filers in each jurisdiction.

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A Canadian map of federal tax paid per capita with the values for BC, Alberta, NWT, Ontario and Quebec as question marks

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The following content is sponsored by Fidelity Investments

Mapped: Federal Tax Paid Per Capita Across Canada

Which parts of Canada pay the most personal tax? In 2021, according to the latest available data, people in Ontario paid by far the greatest share: 42% of the total. Of course, Ontario is also the most populated province.

But if we look at which parts of the country paid the most and least taxes on a per capita basis, the picture looks different. In this graphic from Fidelity Investments, we show the amount paid per tax filer for each province and territory.

A Breakdown of Tax Per Person

We took the total personal federal tax paid in each province according to 2021 tax filing data from the Canada Revenue Agency. We then divided the total tax paid by the number of people filing taxes in the province. Below, we rank the provinces and territories from least to most taxes on this basis.

Province or TerritoryFederal Tax Paid Per Person
New Brunswick$4,186
Prince Edward Island$4,491
Nova Scotia$4,708
Manitoba$5,001
Newfoundland and Labrador$5,033
Quebec$5,352
Saskatchewan$5,596
Nunavut$6,314
British Columbia$6,828
Yukon$6,897
Ontario$6,969
Alberta$7,608
Northwest Territories$7,876
All of Canada$6,368

All of Canada is calculated as the total federal taxes paid in Canada divided by the total number of tax filers in Canada.

New Brunswick paid the least taxes on a per capita basis. Within the province, 13% of people worked in retail jobs, the highest proportion nationally. Retail positions in New Brunswick earned $34,000 annually on average. As a whole, 71% of people in New Brunswick earned less than $49,000 per year.

The Highest Taxes Per Capita

The Northwest Territories (NWT) paid the most taxes relative to the number of tax filers. Public administration workers made up nearly a quarter of tax filers, four times the national share of 6%. These workers, which include local, provincial, federal, and aboriginal government employees, had an average annual income of $120,000 in the NWT.

Additionally, the territory also had a relatively high proportion of people working in mining, who earned $221,000 a year on average.

However, it’s important to note that the NWT faces a high cost of living. On average, households in the capital city of Yellowknife paid 28% more for food and 47% more for shelter than the average Canadian household in 2021.

On a per person basis, Ontario paid the third highest taxes in Canada. The province had the highest proportion of finance and insurance workers, who earned $106,000 annually.

Reducing Your Taxes

Generally, a higher income leads to higher taxes. However, you can explore allowable deductions such as RRSP contributions to save more of your money.

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Use Fidelity’s income tax calculator to quickly estimate your taxes.

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