Are we going to be OK in retirement without healthy defined benefit pensions?

financialpost.com:

Are we going to be OK in retirement without healthy defined benefit employer pensions? This is the question Anthony, 54, and Deirdre, 53, are trying to answer.

“The only reason my parents were able to retire is because they both had defined benefit pensions that pay them a good regular income,” said Anthony.

“My wife has worked part time most of her adult life to better care for and raise our children. Her salary over the last 20 years has never surpassed $15,000. I work in the hospitality industry and about three years ago took on a five-year contract position that pays $125,000 a year before tax and does have a defined benefit plan that will pay two per cent for every year worked. Throughout our working lives we have been diligent about saving and investing. We are funding our retirement and we don’t know if what we’ve saved is going to be enough.”

The concern has taken on added urgency because they would like to retire within the next two years, when Anthony’s employment contract ends. “We have two adult children and aging parents. We want to travel, catch up on projects and do things we want to do before other responsibilities take over, such as helping our elderly parents,” said Anthony.

He and Deirdre have saved $840,000 in registered retirement savings plans (RRSPs), $380,000 in tax-free savings accounts (their TFSAs are invested 100 per cent in stocks, with dividends reinvested each year to maximize contributions), $810,000 in locked-in retirement accounts (LIRAs) and $400,000 in non-registered accounts. With the exception of their TFSAs, their portfolio is 80 per cent stocks and 20 per cent bonds or bond equivalents.

They own a home in Quebec valued at $950,000 with a $450,000 mortgage at 2.19 per cent ($2,000