Our free retirement calculator will help you understand how much you need to save for retirement. Start by telling us your current financial situation.
of my savings are in accounts registered as TFSA or RRSP.
Save smarter for retirement with Wealthsimple.
Adding this extra detail will make your results more accurate.
If you don't enter your province, our calculations are based on average tax rates across Canada.
Things like rent, property and business income or inheritance. We already take into account your maximum OAS and average CPP. If your partner also receives these benefits, add your estimated annual benefits here.
We've made some assumptions about your situation and market performance, but you can adjust these to see how they affect your results.
What do you expect your investments to pay off by the time you retire?
A life expectancy of 95 years is a common economically conservative estimate for Canadians.
How does our pension calculator work?
Our retirement savings calculator gives you an estimate of how much you need for your retirement and how much you have already saved. The calculator takes into account your recorded and unrecorded savings, annual returns, investment fees, income taxes, and inflation to calculate these estimates. Here are some market assumptions that go into our calculations.
- 2% inflation rate.
- Annual salary increase of 2% per year up to age 45 and no more thereafter.
- Annual management fee of 0.60%.
- Annuity yield minus commissions 2.77%.
- Ongoing monthly contributions will max out registered accounts first. Excess contributions are treated as taxable investments.
What questions does the pension calculator help with?
Our pension calculator can help you answer all the questions that are swirling around in your head, such as:
- How much do I need to retire in Canada?
- How much should you have saved for retirement?
- How much will I have when I retire?
- Am I saving enough for retirement?
- How much can I spend in retirement?
Here's how to prepare for retirement
Open a retirement account.If you have access to a GRSP, you must contribute at least the amount of money your employer is willing to pay. You should tooOpen an RRSPif you don't already have one. An RRSP is one of the most popular ways to save for retirement in Canada, and it comes with good tax benefits. learn more aboutRRPjGRSP.
Avoid paying high fees.Fees are like savings termites: they will chew through your savings. If youInvest with Wealthsimple, we charge an administration fee of 0.5% if you invest up to $100,000 and 0.4% if you deposit more than $100,000. That's significantly less than the 2% fees paid by traditional mutual fund investors in Canada.
Make smart moves.Start saving for retirement as early as possible and harness the power ofcomposition.create a budgetthat includes retirement savings, find outhow investments work, discover smartretirement strategiesand understand what mattersretire early.
A word of warning
Our retirement savings calculator is not financial advice; is for illustrative purposes only and results are estimates. The calculator can be a useful tool for estimating how much you will need for retirement, but understand that it has limitations. For example, the calculator does not anticipate or account for future changes in pension programs or state tax rates. In addition, the return on investment may vary.
frequently asked Questions
There is no set retirement age, but 65 isretirement age in Canadathat you will hear often. Because when you turn 65, you will be eligible for all Canada Pension Plan (CPP) and Old Age Insurance (OAS) benefits.
The amount you need in retirement depends on how your income and expenses develop when you retire. As a general rule of thumb, you should aim for at least 70-80% of your preretirement income for each year of your retirement. In retirement, you can spend less money on savings, housing, taxes, and transportation to work, but more on hobbies, utilities, and health care. Ask yourself: When I retire, will I need as much money as I do now, or less? you could use oneTool to find your ideal replacement ratio.
There is no sure way to determine thishow long the pension will last.However, you can use our retirement calculator to calculate how much you'll have if you spread your retirement savings from the year you retire until you turn 95.
Yes, our retirement calculator can be used by couples or individuals. To create a combined pension plan for you and your partner, enter your income and savings in the additional fields below the calculator and be sure to check the “I have a partner” box.
We charge a fraction of the fees paid by traditional mutual fund investors. Our management fee is 0.5% (reduces to 0.4% if you invest over $100,000) plus underlying fund fees of around 0.1%. The average mutual fund investor pays 2% in fees.
Our intelligent technology helps you keep your portfolio on track with automatic deposits, automatic rebalancing and dividend reinvestment. And we have a team of experienced financial advisors ready to answer your questions and provide advice whenever you need it.
Note: The total savings above calculate what you would save if you investedRiquezasimple Investcompared to a traditional mutual fund investor. We compare the evolution of your current savings from now to retirement based on your chosen yield. All figures are for illustrative purposes only, actual results may vary and fees are subject to change among other things.
The amount of CPP you receive upon retirement depends on how long you have been paying and how much money you have been paying. We have included the average CPP payout for 2018 as the default value in the calculator. To be more specific, you canCalculate your exact CPP paymentand add to pension calculator.
The entitlement to old-age security depends on the amount of your income. The default value in the calculator is the maximum monthly payment for 2019, regardless of your marital status. You can check the latest onesAmounts of pension insurance contributionsto find out exactly how much money you will receive and add it to the calculator for greater accuracy.
There's no way to predict your future salary, but you can expect inflation to follow at a rate.studies showthat wages are generally highest in middle age. To reflect this, we have capped our assumed salary increase to 45 years.
First of all, people are living longer. Although the average life expectancy in Canada is 82 years, many people exceed that number. It's better to save more money for retirement than to run out of savings. Additional savings can always be passed on to your beneficiaries. You can change the default life expectancy if you think you will live longer or shorter.
Our retirement calculator takes into account the average Canada Old Age Insurance (OAS) and Canada Pension Plan (CPP) retirement income for 2018. You must enter how much additional income you expect to receive in the Retirement income field, otherwise we will assume average numbers.
Our retirement savings calculator is not designed for use outside of Canada. It only considers Canadian tax rates and retirement accounts.
Yes, you can use the calculator to determine your retirement savings gap based on how much you want to withdraw per year of retirement.
No, the calculator does not tell you how high your pension will be. The calculator assumes you get the average OAS salary. If you expect to receive a higher-than-average AHV payment, you should add the deductible to the Expected Annual Retirement Income field above.
Yes, we have designed the calculator in such a way that it can be used if you want to retire sooner or later. Simply enter the retirement age from which you would like to swap everyday work for a life of leisure.
Make an appointment with one of our financial advisors to discuss your retirement planning.
How much money do you need to retire with $100000 a year income Canada? ›
3) What will my expenses be? The general wisdom is that you will need 70 to 80 percent of your current salary to maintain a similar lifestyle in retirement. That means if you made $100,000 each year, you should plan to have $70,000 to $80,000 in retirement income, for example.How much do I need to retire to be considered rich in Canada? ›
If you were to estimate what amount you should have saved for retirement based on the Canadian average, a single person should have $800,000 and a couple should have $1.6 million. This is based on the amount lasting you roughly 25 years at $32,000 annually.How much money does the average Canadian need to retire comfortably? ›
According to a survey, Canadians estimate, on average, they need $756,000 to retire comfortably. Will this amount be enough for you? Well, that depends on your desired retirement lifestyle and other variables, such as the cost of living in your city and your life expectancy.How much does the average 65 year old have in retirement savings Canada? ›
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Moving to Canada doesn't mean you need to give up your U.S. citizenship. You can receive Social Security benefits while living in another country, but you will also likely still be subject to U.S. taxes if you earn supplemental income.Is $2 million enough to retire in Canada? ›
Yes, for some people, $2 million should be more than enough to retire. For others, $2 million may not even scratch the surface. The answer depends on your personal situation and there are lot of challenges you'll face. As of 2023, it seems the number of obstacles to a successful retirement continues to grow.Is $3 million enough to retire at 55 in Canada? ›
Yes, you can retire at 55 with three million dollars. At age 55, an annuity will provide a guaranteed income of $168,750 annually, starting immediately for the rest of the insured's lifetime.What is considered very high net worth in Canada? ›
With all that said, anyone with a net worth of over $1 million should be considered rich in Canada. Per Statistics Canada, 764,033 people, or 2% of the population, have a net worth between $1 million and $5 million.What is considered high net worth in Canada? ›
In order to be considered wealthy in Canada, you should have a net worth of at least $1 million dollars. That being said, a lot of Canadians that are considered wealthy live a relatively normal life. Most of their net worth is in their primary residence, investments, retirement packages, or even a mix of the three.How much money does the average Canadian have in their bank account? ›
Statistics Canada said the average Canadian household had an average net savings of around $9,972 for the 2021 year.
What is the average monthly retirement income in Canada? ›
Canada Pension Plan/Quebec Pension Plan CPP and QPP are probably the best known of all government-sponsored retirement income options. The amount you'll receive can vary greatly, however. While the maximum monthly CPP payment is $1,254, the average amount that Canadians receive is only $728.How much does the average Canadian retiree live on? ›
According to Statistics Canada, the median income (used instead of average to filter out effects of high-income earners) for senior households, where the highest income earner is 65 years old or more, is $65,300. This figure is pre-tax income. The after-tax median income is $61,200.Can I retire at 60 with $500 K in Canada? ›
Generally speaking, you can retire at 60 with $500,000, but you may not like how much income you have or it may not be enough for your needs. However, some people can retire on less.What is the average nest egg in retirement? ›
The above chart shows that U.S. residents 35 and under have an average of $30,170 in retirement savings; those 35 to 44 have an average $131,950; those 45 to 54 have an average $254,720; those 55 to 64 have an average $408,420; those 65 to 74 have an average $426,070; and those over 70 have an average $357,920.What is the best age to retire in Canada? ›
Many Canadians retire around age 65 since that's when government retirement benefits such as Old Age Security (OAS) are designed to start.Is it cheaper to retire in Canada or US? ›
Typically, you will pay less in taxes if you retire in the U.S. State taxes are especially going to be lower than Canadian provincial taxes.Can you collect Canada pension and US Social Security? ›
Individuals who have worked and contributed into social security in both Canada and the U.S. can generally collect retirement benefits from both countries.What happens to my Social Security if I move to Canada? ›
If you have Social Security credits in both the United States and Canada, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country.Can you retire on $350000 in Canada? ›
Retiring on $350,000 is difficult but not impossible. Most investors can deploy a strategy of investing in robust high-yield dividend stocks along with a systematic withdrawal plan to retire on their investments.Can I retire with 1.5 million in Canada? ›
Yes, you can retire at 60 with $1.5 million. At age 60, an annuity will provide a guaranteed income of $91,500 annually, starting immediately for the rest of the insured's lifetime. The income will stay the same and never decrease.
What is the new rule of thumb is $3 million retirement? ›
At age 60, a person can retire on 3 million dollars generating $183,000 a year for the rest of their life starting immediately. At age 65, a person can retire on 3 million dollars generating $201,900 a year for the rest of their life starting immediately.Can a couple retire on 500k in Canada? ›
The short answer is yes—$500,000 is sufficient for many retirees. The question is how that will work out for you. With an income source like Social Security, relatively low spending, and a bit of good luck, this is feasible.How much money should a 65 year old have saved for retirement? ›
We estimated that most people looking to retire around age 65 should aim for assets totaling between seven and 13½ times their preretirement gross income.Can you retire $2.5 million? ›
Obviously, asking is 4 million enough to retire at 55 would be a better position, but if you can save 2 million or 2.5 million dollars, you should be able to live comfortably, especially once Social Security kicks in.What percentage of Canadians have a net worth of 5 million? ›
He found there are about 764,033 Canadians with between $1-5 million USD, or about 2% of the population.What net worth is affluent? ›
How much money do you need to be considered rich? According to Schwab's 2022 Modern Wealth Survey (opens in new tab), Americans believe it takes an average net worth of $2.2 million to qualify a person as being wealthy. (Net worth is the sum of your assets minus your liabilities.)What net worth is mass affluent? ›
Mass Affluent Definition
Mass affluent is a term that describes a middle-class household earning an annual income of more than $75,000 and holding between $100,000 and $1 million in investable assets.
According to a recent study, Canada is home to 3.7% of the world's millionaires. This puts us in 7th place globally, behind the United States, China, and Japan. The total number of millionaires in Canada is 1,681,969, which represents about 4% of the population.How much does the average US citizen have in the bank? ›
How much does the average household have in savings? While the median bank account balance is $5,300, according to the latest SCF data, the average — or mean — balance is actually much higher, at $41,600.
How much money does the average American have? ›
According to the Northwestern Mutual Planning and Progress Survey for 2022, the average amount of personal savings in 2022 came in at $62,000.What is average pension in USA? ›
Average Retirement Income in 2021. According to U.S. Census Bureau data, the median average retirement income for retirees 65 and older is $47,357. The average mean retirement income is $73,228.Can you retire on $3 million in Canada? ›
Yes, you can retire at 55 with three million dollars. At age 55, an annuity will provide a guaranteed income of $168,750 annually, starting immediately for the rest of the insured's lifetime.What percentage of Canadians earn over $100000 per year? ›
About 10.7% of Canadians have an annual income of $100,000 or more.How much money does average Canadian have in the bank? ›
Statistics Canada said the average Canadian household had an average net savings of around $9,972 for the 2021 year.Can I retire on 400000 in Canada? ›
If you put your $400,000 nest egg to work and earn a 5% dividend from the investment, it'll generate $20,000 per year. That combined with government benefits, should be enough to fund a middle-class retirement in a cheaper Canadian city. The good news is, there are plenty of stocks that pay sustainable 5% dividends.What salary is the top 1% in Canada? ›
Individuals in the top 1% and top 0.1% experienced decreases in average wage and salary income, falling by $2,200 to $315,700 for the top 1%, and by $13,000 to $1,002,300 for the top 0.1%.Why are US salaries higher than Canada? ›
There are number of reasons: -Canada is heavily taxed country. -U.S. GDP is much higher than Canada, larger country, the whole land is used and generating businesses. -Competition is higher in U.S than Canada, numbers of professionals are higher than Canada and demand for professionals are higher.How much do you need to earn to be in the 1% in Canada? ›
What income puts you in the top 1% in Canada? According to Statistics Canada, if you want to be in the 1% of top earnings, you'll need to make around $500,000 a year.Is $5 million enough to retire on? ›
Is It Enough to Live Comfortably? The answer to this question is a resounding yes! You can retire on five million dollars. You could retire quite comfortably on that amount of money.
What is a good monthly retirement income? ›
A good retirement income is about 80% of your pre-retirement income before leaving the workforce. For example, if your pre-retirement income is $5,000 you should aim to have a $4,000 retirement income.When can I retire if I have 2 million dollars? ›
With an average life expectancy of 77, the $2 million you've saved will need to stretch from retirement until your death. You'll be able to supplement it with Social Security, but you can't apply for that until at least age 62, and that's at a reduced benefit.What is high net worth in Canada? ›
In order to be considered wealthy in Canada, you should have a net worth of at least $1 million dollars. That being said, a lot of Canadians that are considered wealthy live a relatively normal life. Most of their net worth is in their primary residence, investments, retirement packages, or even a mix of the three.How much does the average Canadian couple spend in retirement? ›
His final conclusion was that “a barebones but fulfilling middle-class retirement for a single person in Canada starts about $33,000 per year for a single, and $44,000 per year for couples.” Those numbers were for 65-year-old retirees who owned their own home.What is the 4 rule retirement? ›
What is the 4% rule for retirement? The 4% rule states that you should be able to comfortably live off of 4% of your money in investments in your first year of retirement, then slightly increase or decrease that amount to account for inflation each subsequent year.