The amount that Canadians will need in retirement is one of the most important - and at the same time most controversial - issues in retirement planning.

Here are three perspectives on this issue that you might find useful.

New research on US retiree income needs

Today's email features an interview with Alicia Munnell, who from 1995 to 1997 was one of three members of Bill Clinton's Council of Economic Advisors and is founding director of the Centre for Retirement Research at Boston College.

She discusses research showing that 70% of preretirement income is the threshold level that most Americans need to enjoy the kind of retirement they aspire to. That said, she points out that people can get by on less by moving to areas where housing costs are lower or by cutting back on discretionary expenses such as eating out.

Helping clients forecast retirement spending

A common issue for some advisors is getting clients to focus on how much they're spending now and how much they'll need in retirement.

Some advisors have had success using Statistics Canada data on average household spending in fifteen categories as a starting point - getting clients to think about whether their spending is above or below the average.

Note that Statistics Canada breaks out this number by metropolitan area, to make the averages more relevant to individual clients. The link to this report is below.

http://www.statcan.gc.ca/subject-sujet/result-resultat.action?pid=3868&id=2180&lang=eng&type=CST&pageNum=1&more=0

Spending patterns in retirement

Recently, Russell Canada issued a report analyzing Statistics Canada data on retirement spending.

Among their findings:

• The average retiree household aged 65 to 74 has income of just over $35,000; half of that income comes from Government transfers
• Russell suggests that spending in retirement can be divided into three categories - essentials, lifestyle and estate
• Essential spending consists of food, shelter and transportation; lifestyle expenses are discretionary and include travel and dining out
• For retiree households with incomes of $35,000 to $60,000, essential expenses average $31,000 and lifestyle expenses $9,000
• For retiree households with incomes over $60,000, essential expenses average $51,000 and lifestyle expenses $21,000

Russell also conducted a survey of Canadian plans for retirement. Despite the economic and market downturn, few Canadians say they're planning to work longer - although there has been a decline in confidence about having enough money during retirement.

To see more about Russell's research on retirement attitudes, go to http://www.russell.com/ca/My_Retirement/default.asp