Picture two households, both 55, both about to retire.

Household one has $1 million sitting in RRSPs and non-registered accounts. No pension. They look at their net worth statement and feel good about it. A million dollars is a million dollars.

Household two has $600,000 in investments and a HOOPP pension that will pay roughly $45,000 a year for the rest of their life, starting now. Their net worth statement, the conventional kind, says they have $600,000. Six hundred thousand dollars looks a lot smaller than a million.

So which household is actually in the stronger position?

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