Disclaimer

The Retirement Income Calculator is a tool designed to help users estimate potential retirement income based on certain assumptions and inputs. This calculator is intended for informational and educational purposes only and should not be considered financial, investment, tax, or legal advice.

Important Notes:

  • Tax Considerations: This calculator does not take into account any taxes that may apply to withdrawals, income, or investment returns. Depending on your income sources and withdrawal amounts, taxes could significantly impact your retirement income. For a more accurate assessment, consult with a tax professional.

  • Assumptions: The calculator relies on user-provided assumptions, such as inflation rate, annual return rate, and years of retirement. Actual future results may differ, as these assumptions are subject to market fluctuations, economic conditions, and individual financial circumstances.

  • No Guarantee of Results: The results generated by this calculator are estimates only and do not guarantee future financial performance or sufficiency of funds during retirement.

  • Professional Advice: For a comprehensive retirement plan tailored to your unique situation, please consult a certified financial planner or advisor.

Use at Your Own Risk: OpenAI and the creators of this calculator are not responsible for any financial decisions or outcomes that may result from the use of this tool.

By using this calculator, you agree to these terms and understand the limitations outlined in this disclaimer.

INSTRUCTIONS

  1. OPEN THE CALCULATOR

The calculator interface has multiple sections. Start from the top and work your way down through each section, entering information relevant to your retirement planning.

4. INCOME OPTIONS SECTION

Option 1: Enter Desired Income: Manually input the specific annual income you wish to withdraw each year in retirement.

Option 2: Withdraw Percentage of Total Assets: Set a percentage of your total assets to withdraw each year.

Option 3: Leave a Desired Estate Value
Calculate the maximum annual income you can withdraw while ensuring a specific estate value remains at the end of your retirement years.

7. VIEW RESULTS

Projection Result: The calculator will display a summary of your retirement plan, showing whether your savings will last through retirement based on your selected income.

Income Chart: A chart displays your projected savings balance over time, allowing you to visually track how your retirement savings might change each year.

Spreadsheet Data: A detailed table below the chart provides year-by-year information, including:

  • Inflation-adjusted income needed each year.

  • CPP, OAS, and other income.

  • Investment withdrawals.

  • Remaining savings balance each year.

2. INVESTMENT SECTION INPUTS

RRSP Savings ($): Enter the current balance of your RRSP (Registered Retirement Savings Plan).

TFSA Savings ($): Enter the total amount saved in your TFSA (Tax-Free Savings Account).

Corporate Savings ($): If you have corporate or business savings, enter the total amount here.

Non-Registered Savings ($): Input any savings you have in non-registered accounts (investments outside of registered accounts like RRSP and TFSA).

Other Investments ($): Add the total balance of any additional investments not listed above.

5. ASSUMPTIONS SECTION

Annual Return Rate (%): Enter the expected annual return rate on your investments (e.g., 5%).

Inflation Rate (%): Input an assumed inflation rate to adjust income and expenses over time (e.g., 2%).

Years of Retirement: Enter the number of years you expect to be in retirement.

8. PRINT TO PDF

To save or print your results, click the Print to PDF button. The PDF will include:

  • All inputs you've entered.

  • A summary of the results.

  • The income chart.

  • The detailed spreadsheet.

  • The Better Financial Choices logo (if provided in the PDF settings).

3. INCOME SOURCE INPUTS

CPP Income ($/yr): Enter your expected annual income from CPP (Canada Pension Plan) when you begin to receive it.

CPP Start Year: Indicate the number of years after retirement when you expect CPP payments to start. For example, if you plan to start CPP 5 years into retirement, enter "5".

OAS Income ($/yr): Enter your expected annual OAS (Old Age Security) income.

OAS Start Year: Enter the number of years after retirement when you expect to start receiving OAS.

Other Pension Income ($/yr): If you have income from other pensions, enter the expected annual amount.

Other Income ($/yr): Include any additional income sources you plan to have in retirement (e.g., rental income, annuities).

6. CALCULATE PROJECTION

Once all fields are filled, click the Calculate Projection button. The calculator will process your data and display a summary of your retirement income plan.

9. TIPS FOR USING THE CALCULATOR

Experiment with Different Assumptions: You can adjust the annual return rate, inflation rate, and years of retirement to see how different assumptions impact your plan.

Plan for a Legacy: If you want to leave money for heirs, set a Desired Final Balance in Option 1.

Review Year-by-Year Data: The spreadsheet provides a breakdown of each year, which is helpful for seeing how different income sources and withdrawals affect your savings over time.

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