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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 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 last year's salary. The default is 70%. You can change this amount to be as low as 50% and as high as 150%. |
| 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. CPP/QPP is payable at age 65 (it can be as early as age 60 or as late as age 70). This is based on a final average calculation of your salary. A maximum pensionable earnings of $775 applies to those who earned $37,600 or more in 2001. 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. This calculator assumes a retirement age of 65. For additional information, click here. |
| 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. If your net income in 2001 exceeds $55,309, you must repay 15% of the excess net income up to the full OAS payment. OAS benefits are reduced at the time of payment to reflect this deduction. For additional information, click here. |
| Expected Rate of Inflation | What you expect for the average long term inflation rate. |