Do you know what it will take to create a secure retirement? Use this calculator to help you create your retirement plan. View your retirement savings balance and your withdrawals for each year until the end of your retirement.
- Current age
- Your current age.
- Age of retirement
- Age you desire to retire.
- Gross annual income
- Your total household income. If you are married, this should include your spouse's income.
- Current retirement savings
- Total amount that you currently have saved toward your retirement. Include all sources of retirement savings except for your pension income.
- Pre-retirement rate of return
- The annual percent you expect to earn on your investments before you retire.
- Post-retirement rate of return
- The annual percent you expect to earn on your investments after you retire.
- Percent of income to save
- The percentage of your annual income you will save for your retirement goals.
- Expected salary increase
- Annual percent increase you expect in your household income.
- Years until retirement
- Number of years before retirement.
- Years of retirement income
- Total number of years you expect to use your retirement income.
- Percent of income at retirement
- The percent of your working year's household income you think you will need to have in retirement. This amount is based on your income earned during the last year you will work. The default is 70%. You can change this amount to be as low as 50% and as high as 150%.
- Monthly Company Pension
This is your current monthly figure as provided by your employer on your
pension statement. 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
- CPP (Canada Pension Plan) or QPP (Quebec Pension Plan)
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 payment when you
retire. CPP/QPP is payable at age 65 (it can be as early as age 60 or as
late as age 70). This is based on a final average calculation of your
salary. A maximum pensionable earnings of $775 applies to those who earned
$37,600 or more in 2001. Should you choose to retire early, your monthly
CPP income will be reduced by 0.5% per month for every month before 65. If
you choose to delay retirement, your monthly CPP income will be increased
by 0.5% per month for every month after age 65. This calculator assumes a
retirement age of 65. For additional information, click here.
- RRSP (Registered Retirement Savings Plan)
This government sponsored financial planning program allows citizens to
contribute 18% of their previous years gross income into a tax sheltered
retirement account. This calculator allows you to save more than 18% of
your income but it should be noted that tax has not been incorporated into
the calculator. In addition, if you have a company pension plan this may
reduce your maximum annual contributions by what is called a "pension
- Monthly OAS (Old Age Security)
The Old Age Security pension is a monthly benefit available, if applied
for, to most Canadians 65 years of age or over. If your net income in
2001 exceeds $55,309, you must repay 15% of the excess net income up to the
full OAS payment. OAS benefits are reduced at the time of payment to
reflect this deduction. For additional information, click here.
- Expected Rate of Inflation
- What you expect for the average long term inflation rate.