Retirement Planner (Canadian)

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.

RESULTS_MSG

END_OF_RETIREMENT_MESSAGE This is based on retirement expenditures of INCOME_REQUIRED_AT_RETIRE per year. This amount is INCOME_PERCENT of your income earned during the last year you will work. We estimated your final year of income at INCOME_AT_RETIRE. **GRAPH**
Retirement Plan Inputs
Current ageCURRENT_AGE
Age of retirementAGE_OF_RETIREMENT
Household incomeHOUSEHOLD_INCOME
Current retirement savingsCURRENT_SAVINGS
Annual retirement savingsSAVINGS_PERCENT (ANNUAL_SAVINGS annually which INCREASE_ANNUAL_SAVINGS increase as your income increases)
Expected income increaseSALARY_PERCENT
Years of retirement incomeYEARS_OF_RETIREMENT
Income required at retirementINCOME_PERCENT
Company pension planOTHER_PENSION_AMOUNT1 per month, starting at age OTHER_PENSION_START1. OTHER_PENSION_INFLATION1
CPP or QPPOTHER_PENSION_AMOUNT2 per month, starting at age OTHER_PENSION_START2. Your monthly CPP or QPP payment has been reduced by 7.2% for each year before age 65 or increased by 8.4% for each year after you turn 65. OTHER_PENSION_INFLATION2
OASOTHER_PENSION_AMOUNT3 per month, starting at age OTHER_PENSION_START3. OTHER_PENSION_INFLATION3
Investment Returns and Inflation
Rate of return before retirementPRE_RATE_OF_RETURN
Rate of return during retirementPOST_RATE_OF_RETURN
Expected inflation rateINFLATION_RATE
Result Summary
Years until retirementYEARS_UNTIL_RETIREMENT
Your last year's incomeINCOME_AT_RETIRE
Estimated annual retirement expendituresINCOME_REQUIRED_AT_RETIRE
Your ending balanceENDING_BALANCE

Balances by year

**REPEATING GROUP**

Retirement Planner (Canadian) Definitions

Current age
Your current age.
Age of 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 happened when you were 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.
Current retirement savings
Total amount that you currently have saved toward your retirement. Include all sources of retirement savings except for your pension 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, for the last thirty years the average annual rate of return for the TSX is about 10%. 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, for the last thirty years the average annual rate of return for the TSX is about 10%. 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 contribute
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 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. 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. 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.
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 pension payment as early as age 60 or as late sas 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. This calculator assumes that you start receiving your benefits at age 60 or at the age you retire, whichever is later.
RRSP (Registered Retirement Savings Plan)
This government sponsored financial planning program allows Canadian residents to contribute 18% of their previous years earned income 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 (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 who have lived in Canada for at least 10 year 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.


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