Plan your retirement by projecting how your savings will grow and how long they will last. Enter your current age, target retirement age, savings, monthly contribution, expected return, and desired retirement income. The calculator shows your projected nest egg and estimates years of retirement income.
How the retirement calculator works
This calculator has two phases:
- Accumulation phase — From your current age to retirement, your savings grow with monthly compounding and regular contributions.
- Drawdown phase — After retirement, the calculator estimates how many years your savings can sustain your desired annual income. During drawdown, a more conservative return rate (70% of your growth rate) is assumed to reflect a typical shift toward safer investments in retirement.
How much you need to save for retirement
The amount depends on your desired lifestyle, expected government benefits, and retirement age. Here are benchmarks based on the 4% withdrawal rule (withdraw 4% of savings annually):
| Desired Annual Income | Less CPP + OAS (~$20K) | Savings Needed (4% Rule) |
|---|---|---|
| $40,000 | $20,000 | $500,000 |
| $50,000 | $30,000 | $750,000 |
| $60,000 | $40,000 | $1,000,000 |
| $70,000 | $50,000 | $1,250,000 |
| $80,000 | $60,000 | $1,500,000 |
| $100,000 | $80,000 | $2,000,000 |
Assumes maximum CPP ($16,375/yr) and OAS ($8,732/yr) at age 65.
Canadian government retirement benefits (2025)
| Benefit | Maximum Monthly | Maximum Annual | Start Age | Deferral Bonus |
|---|---|---|---|---|
| CPP | $1,364.60 | $16,375 | 60–70 | +42% if deferred to 70 |
| OAS | $727.67 | $8,732 | 65–70 | +36% if deferred to 70 |
| GIS (single) | ~$1,065 | ~$12,780 | 65 | Not deferrable |
CPP at different ages:
| Start Age | Monthly (% of age-65 amount) | Annual Amount (at max) |
|---|---|---|
| 60 | 64% of age-65 amount | $10,480 |
| 62 | 78.4% | $12,838 |
| 65 | 100% | $16,375 |
| 67 | 116.8% | $19,126 |
| 70 | 142% | $23,253 |
Deferring CPP from 60 to 70 results in more than double the monthly payment.
Average retirement savings by age in Canada
| Age Group | Average RRSP Balance | Median Net Worth |
|---|---|---|
| 25–34 | $18,000 | $48,800 |
| 35–44 | $65,000 | $234,400 |
| 45–54 | $125,000 | $521,100 |
| 55–64 | $190,000 | $690,000 |
| 65+ | $175,000 | $543,200 |
Source: Statistics Canada Survey of Financial Security. Median net worth includes home equity.
Retirement savings strategies
Maximize registered accounts first
Prioritize TFSA and RRSP contributions before non-registered investing. TFSA provides tax-free growth and withdrawals (no OAS clawback impact). RRSP provides upfront tax deductions but withdrawals are taxable.
The RRSP meltdown strategy
Between retirement and age 72, consider withdrawing from your RRSP while in a low tax bracket to avoid large mandatory RRIF withdrawals later. This can reduce lifetime taxes and preserve OAS eligibility.
Pension income splitting
Canadians 65+ can split up to 50% of eligible pension income (including RRIF withdrawals) with a spouse, potentially reducing the household tax bill by thousands annually.
Delaying government benefits
Each year you delay CPP after 60 increases the benefit by 8.4% per year. Each year you delay OAS after 65 increases it by 7.2%. If you have other income to bridge early retirement, deferring can significantly increase lifetime government income.
Retirement income by account type
| Source | Tax Treatment | OAS Clawback? | GIS Impact? |
|---|---|---|---|
| CPP/QPP | Fully taxable | Yes | Yes |
| OAS | Fully taxable | Yes | Yes |
| RRSP/RRIF | Fully taxable | Yes | Yes |
| TFSA | Tax-free | No | No |
| Non-registered (capital gains) | 50% taxable | Yes | Yes |
| Canadian dividends | Grossed-up + credit | Yes | Yes |
| Rental income | Fully taxable | Yes | Yes |
| GIS | Tax-free | N/A | N/A |
Key takeaway: TFSA withdrawals are the most tax-efficient retirement income — they do not trigger OAS clawback or reduce GIS benefits.
How much to save per month to reach your goal
| Monthly Savings | 20 Years at 7% | 25 Years at 7% | 30 Years at 7% | 35 Years at 7% |
|---|---|---|---|---|
| $500 | $261,186 | $405,326 | $609,788 | $895,495 |
| $1,000 | $522,372 | $810,652 | $1,219,576 | $1,790,990 |
| $1,500 | $783,558 | $1,215,978 | $1,829,364 | $2,686,485 |
| $2,000 | $1,044,743 | $1,621,305 | $2,439,152 | $3,581,980 |
| $2,500 | $1,305,929 | $2,026,631 | $3,048,940 | $4,477,475 |
Assumes 7% annual return, monthly compounding, no initial savings.
Related calculators
- RRSP Calculator — Project tax-deferred retirement savings growth
- TFSA Calculator — Estimate tax-free investment growth
- CPP Calculator — Estimate Canada Pension Plan benefits
- OAS Calculator — Estimate Old Age Security payments
- RRIF Calculator — Calculate minimum RRIF withdrawals
- Investment Calculator — Project portfolio growth with inflation adjustment
- Income Tax Calculator — Estimate retirement income taxes
- Compound Interest Calculator — See how compounding grows savings
- Salary Calculator — Convert income to determine savings capacity
Start saving for retirement today
The earlier you start investing, the more time compound growth has to work in your favour. You can begin with as little as $1 and get a $25 bonus when you open an account. Follow our guide to buying your first ETF and take the first step toward your retirement goal.