Retirement Calculator for Investment Planning & Savings

Without your salary, you'll need different sources of income to supplement your lifestyle. The most common are the Canada Pension Plan (CPP) and Old Age Security (OAS), which are virtually universal. People also commonly utilize a registered retirement savings plan (RRSP) or tax-free savings account (TFSA) for living comfortably in their later years. Some may have a pension from their career, whereas others might have an investment portfolio structured to generate income and minimize risk.

Inflation has a habit of indirectly eating into your retirement savings by eroding your purchasing power. Other financial risks could be health-related, as medical expenses can add up over time, and one-off emergencies can have an immediate, significant impact. Some suggest that 75% of your pre-retirement income can be a rough estimate of how much you'll be spending, but simulate different scenarios. Divorce, excessive withdrawals, market volatility—a proper retirement plan is ready to pivot and adjust to risks as they arise.

When assessing how much you need to save for retirement, life expectancy and retirement age are two of the leading factors—they literally determine how long you'll be in this stage of life. From there, you'll need to forecast monthly and annual expenses to estimate how much income you need to retire. An emergency fund can help, and working with an advisor on an investment strategy with a higher rate of return than inflation can help offset a weakening dollar. Everyone is different—some may have an inheritance to rely on, others might find a lifetime annuity suits their needs—so having a firm grasp on your situation is vital.

Once you've calculated how much you'll need to stay financially secure based on the information provided above, your focus should shift to figuring out how to get there with the help of your advisor. Investors should contribute to registered tax-advantaged accounts like RRSPs and TFSAs to build their nest egg during their working years, and establish a clear budget to withdraw money responsibly to make sure it lasts.

We built this retirement calculator to empower every Canadian to be able to afford a comfortable, fulfilling retirement. It will help you set a savings goal, determine how long your money will last, and, if you're falling short, how to adjust your monthly and annual savings to get back on track.