RRSP and RESP

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.*

Users are highly recommended to download the Java Virtual Machine (JVM). Without this, you may be unable to accurately print or view the calculator. Please visit the Help section pertaining to the JVM.

To print the information on this page: Right click anywhere in this window and select "Print".

Glossary

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 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 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. As of January 2006, the maximum CPP payment is $844 per month. Should you choose to start your Canada/Quebec pension payments earlier than age 65, your monthly CPP payment will be reduced by 0.5% per month for every month before 65. If you choose to delay retirement, your monthly CPP payment will be increased by 0.5% 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 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 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.

*Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.