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Retirement Planner
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.
Definitions
- 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 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 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 to contribute
- 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
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 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 payment when you retire at age 65 (or
as early as age 60 or as late as age 70). The CPP retirement
pension is based on how much, and for how long, you contributed
to the Plan and the age at which you choose to retire.
As of January 2005, the maximum retirement pension is
$828 per month. 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 up to age 70. This
calculator assumes a retirement age of 65.
- 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. For additional information,
click
here.
- Expected Rate of Inflation
- What you expect for the average long term inflation
rate.
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