Project your retirement savings growth and estimate your monthly income in retirement.
Rates as of Q2 2025 (example)
This calculator projects how your retirement savings could grow between now and your planned retirement age, based on your current savings, monthly contributions, and an expected rate of return — then estimates the monthly income that balance could support, compared to the monthly income you say you'd like in retirement.
This calculator compounds your savings monthly: each month, growth is calculated on the current balance and added to it, and then your monthly contribution is added. This continues from your current age to your retirement age. The estimated monthly income in retirement uses the "4% rule" — a common rule of thumb suggesting you could withdraw 4% of your portfolio in the first year of retirement (and adjust for inflation thereafter) with a reasonably low risk of running out of money over a long retirement, though this rule has limitations and is not a guarantee.
Formula: Each month, Growth = Balance × (Annual Return ÷ 12); Balance = Balance + Growth + Monthly Contribution, for (Retirement Age − Current Age) × 12 months. Total Growth = Final Balance − Total Contributions. Estimated Monthly Income = (Final Balance × 4%) ÷ 12. Monthly Surplus/Shortfall = Estimated Monthly Income − Desired Monthly Income.
Example: Starting at age 30 with CA$20,000 saved, contributing CA$500/month, with an expected 6% annual return (example rate — enter a rate appropriate to your investments) until age 65 (35 years), total contributions reach CA$230,000, with total growth of roughly CA$644,826 — giving a projected balance of about CA$874,826 at retirement. Using the 4% rule, this could support an estimated monthly income of roughly CA$2,916, which is about CA$1,084 short of a CA$4,000 desired monthly income. (Note: this example is for illustration purposes only — actual returns vary and are not guaranteed.)
Most Canadians build retirement income from a combination of sources: personal savings in RRSPs and TFSAs (see our RRSP Calculator and TFSA Calculator), employer pension plans if available, and government benefits including the Canada Pension Plan (CPP, based on your contributions during your working years — see our CPP Calculator) and Old Age Security (OAS, a benefit based on residency rather than contributions — see our OAS Calculator). This calculator focuses on the personal savings portion — your projected balance does not include CPP or OAS, which would typically add to your retirement income on top of the figures shown here. Where you hold your retirement savings matters for tax: RRSP withdrawals are taxed as income, TFSA withdrawals are tax-free, and non-registered investments are subject to ongoing tax on interest, dividends, and capital gains (see our Compound Interest Calculator for more on this distinction). The "4% rule" used here is a simplification — actual safe withdrawal rates depend on your asset mix, market conditions in the years around your retirement (sequence-of-returns risk), how long your retirement lasts, and inflation, so many planners suggest a more conservative rate or a flexible withdrawal strategy, especially for longer retirements.
No. This calculator projects only your personal savings (RRSP, TFSA, employer pension, and other investments combined into the figures you enter). CPP and OAS are government benefits that would typically add to your retirement income on top of this projection - use our CPP Calculator and OAS Calculator to estimate those separately.
The 4% rule is a guideline suggesting that withdrawing about 4% of your portfolio in the first year of retirement, and adjusting for inflation in subsequent years, has historically had a reasonably low risk of depleting a balanced portfolio over a roughly 30-year retirement. However, it is based on historical data, assumes a particular asset mix, and does not account for sequence-of-returns risk or retirements longer than the period studied - many planners now suggest more conservative or flexible approaches.
This depends on your current and expected future tax brackets. RRSP contributions reduce your taxable income now but are taxed on withdrawal - generally more beneficial if your tax rate in retirement will be lower than now. TFSA contributions don't reduce current taxable income but grow and can be withdrawn entirely tax-free - useful regardless of your tax bracket and for flexibility. Many people use both - see our RRSP Calculator and TFSA Calculator for more detail.
A later retirement age gives your savings more time to grow with compounding and more years of contributions, while also shortening the period your savings need to support. Even a modest delay - for example, retiring at 67 instead of 65 - can meaningfully increase your projected balance and the income it can support, due to the combined effect of more growth and fewer years of withdrawals.
A shortfall suggests you may need to increase your monthly contributions, aim for a higher (though typically riskier) expected return, delay your retirement age, plan for a lower spending level in retirement, or some combination of these. Government benefits like CPP and OAS, which aren't included in this projection, may also help close some of the gap - check our CPP and OAS calculators.
No, all figures are shown in today's dollars without adjusting for inflation. Over a long time horizon like 30+ years, inflation can significantly erode purchasing power, so the desired monthly income you enter should reflect what that amount would need to buy in retirement, ideally adjusted for expected inflation, or you may want to use a lower expected return to roughly approximate a real (inflation-adjusted) projection.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial or retirement planning advice. The expected return rate is an example only and does not represent a guaranteed or likely return for any investment - investment values can fall as well as rise. This calculator does not include CPP, OAS, employer pension benefits, taxes, or inflation, and uses a simplified 4% withdrawal rule that may not be appropriate for your individual circumstances. Always consult a qualified financial adviser for personalised retirement planning.