Retirement Calculator

Frequently Asked Questions

How much do I need to retire in Canada?

Financial planners typically recommend having 70-80% of your pre-retirement income for a comfortable retirement. For example, if you earn $75,000/year, you'd want $52,500-$60,000 annually in retirement, including CPP and OAS benefits.

What are CPP and OAS benefits?

CPP (Canada Pension Plan) provides monthly payments based on your working history, averaging $760/month in 2024. OAS (Old Age Security) provides up to $707/month for Canadians aged 65+. These supplement your personal retirement savings.

What is the 4% rule for retirement?

The 4% rule suggests withdrawing 4% of your retirement savings annually. This approach aims to make your savings last 25-30 years. For $1 million saved, you could withdraw $40,000 per year.

When should I start saving for retirement?

Start as early as possible. Thanks to compound interest, someone who starts saving at 25 will accumulate significantly more than someone who starts at 35, even with the same monthly contributions. Every year counts.

Should I prioritize RRSP or TFSA for retirement?

It depends on your income level. RRSPs offer immediate tax deductions, beneficial if you're in a high tax bracket now but expect lower income in retirement. TFSAs offer tax-free withdrawals. Many Canadians use both strategically.

Planning for Retirement in Canada

Retirement planning requires understanding multiple income sources including Canada Pension Plan (CPP), Old Age Security (OAS), and personal savings through RRSPs and TFSAs. This calculator helps you project your personal savings needs based on your desired retirement lifestyle.

Key Retirement Milestones

• Age 60: Earliest you can start CPP (with reduction)
• Age 65: Standard retirement age, OAS eligibility begins
• Age 70: Maximum CPP benefits (delayed retirement)
• Age 71: Must convert RRSP to RRIF

The 4% Rule

Financial planners often use the "4% rule" as a guideline - withdraw 4% of your retirement savings annually for a 25-30 year retirement. This calculator uses a similar approach to estimate how long your savings will last and what income they can generate.

Government Benefits

Remember that CPP and OAS will supplement your personal savings. The average CPP payment is around $760/month, and OAS provides up to $707/month (2024). Factor these into your total retirement income planning.