Retirement Planner

Do you know what it may take to create a secure retirement?

Use this calculator to help you create a simple retirement plan. View your retirement savings balance and your withdrawals for each year until the end of your retirement.

 

Retirement Planner FAQ

Current age

Your current age.

Age at retirement

Age you wish to retire. This calculator assumes that the year you retire, you do not make any contributions to your retirement savings. So if you retire at age 65, your last contribution occurs when you are actually 64. This calculator also assumes that you make your entire contribution at the end of each year.

Gross annual income

Your total household income. If you are married, this should include your spouse's income.

Rate of return before retirement

The annual percent you expect to earn on your investments before you retire. The actual rate of return is largely dependent on the type of investments you select. For example, the annual return of the S&P/TSX Composite Index for the 10 year period from December 31, 2009 through December 31, 2019 was 3.9% (source spindices.com). Over the same period the total annual return (including dividends) was 6.9% (source spindices.com). Savings accounts at a bank or credit union may pay as little as 2% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.

Rate of return during retirement

The annual percent you expect to earn on your investments after you retire. If you plan on withdrawing your money within five years, you may wish to choose a more conservative rate of return. The actual rate of return is largely dependent on the type of investments you select. For example, the annual return of the S&P/TSX Composite Index for the 10 year period from December 31, 2009 through December 31, 2019 was 3.9% (source spindices.com). Over the same period the total annual return (including dividends) was 6.9% (source spindices.com). Savings accounts at a bank or credit union may pay as little as 2% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.

Percent of income to save

The percentage of your annual income you will save for your retirement goals.

Expected income increase

Annual percent increase you expect in your household income.

Years of retirement income

Total number of years you expect to use your retirement income.

Pre-retirement income desired in retirement

The percent of your working year's household income before tax you think you will need to have in retirement. This amount is based on your income earned during the last year you will work. You can change this amount to be as low as 0% and as high as 150%.

Monthly company pension

This is your current monthly figure as provided by your employer on your pension statement, if you have a "defined benefit" pension. By checking the 'Monthly Company Pension adjusted for inflation' box, the inflation rate will automatically be applied. This means you do not have to estimate what your monthly pension will be at retirement.

Monthly CPP or QPP pension

The CPP/QPP ensures a basic income for retired workers. If you have paid into the CPP/QPP, you are entitled to receive a monthly pension payment as early as age 60 or as late as age 70. CPP/QPP is based on how much, and for how long, you contributed to the plan and the age at which you choose to start your Canada/Quebec pension payments. Should you choose to start your Canada/Quebec pension payments earlier than age 65, your monthly CPP payment will be reduced by 0.6% per month for every month before 65. If you choose to delay retirement, your monthly CPP payment will be increased by 0.7% per month for every month after age 65 up to age 70. Click here for more information.

RRSP (Registered Retirement Savings Plan)

This government sponsored financial planning program allows Canadian residents to contribute 18% of their previous years earned income (up to a specified limit) into a tax sheltered retirement account. Please note however, that this calculator allows you to save more than 18% of your earned income up to an annual maximum contribution limit. In addition, if you have a company pension plan this may reduce your maximum annual contributions by what is called a 'pension adjustment'.

Monthly OAS

The Old Age Security pension is a monthly benefit available, if applied for, to most Canadians 65 years of age or over who have lived in Canada for at least 10 years after reaching age 18. If your net income exceeds certain thresholds you must repay part or all of the maximum pension amount. The repayment amounts are normally deducted from the monthly payments before they are issued. Click here for more information.

Expected Rate of Inflation

What you expect for the average long term inflation rate.