Take a 35-year-old with $60,000 saved who adds $800 a month until 65, at a 5% return. That could grow to about $933,872, or about $515,563 in present-day dollars with 2% inflation. The pot could pay roughly $29,414 a year until age 90, which is $15,586 short of a $45,000 goal.
What the calculator does
It grows your savings and monthly contributions up to your retirement age. Then it converts the pot into present-day dollars using inflation and works out the yearly income it could pay until the age you plan for. The gap against your target tells you if you are on track.
Why present-day dollars matter
A million dollars in 30 years buys less than a million now. Compare the inflation-adjusted result with what you spend now. Enter the income you want in present-day dollars as well, so both sides share one measure.
Other income
CPP and Old Age Security will add to what your savings pay, and a workplace pension might too. The calculator leaves them out. The shortfall shown is therefore what your own savings would need to cover. Subtract expected government pensions from your target and the remainder is the gap that’s really yours.
Levers you control
Save more. Retiring later and earning a higher return help too, and each is easy to test by changing one field. Try adding $200 to the monthly savings, or retiring at 67 instead of 65, and watch the result move. Small steps early can count for more than large steps late, because the money has decades to grow and the habit is easier to keep.
Return and inflation
Enter a return after fees. A cautious estimate beats an optimistic one, because markets can come in lower than expected. The 2% inflation figure is the Bank of Canada’s target, although real inflation shifts from year to year.
Choosing accounts
Put savings where they suit your tax position. The RRSP calculator shows how a contribution saves tax, and the TFSA calculator offers a comparison. Review the plan every year. Big life changes call for a review right away.
Retiring earlier
Stopping work at 60 instead of 65 cuts five years from your saving time and adds years you have to fund. In the example that means a smaller pot that must pay out longer, so the yearly income drops. Enter a lower retirement age and see the drop for yourself, since the size of it depends on your balance and your monthly savings.
Spending in retirement
Work costs, commuting and saving often fall away, while travel and health can cost more as the years go by. Spending often eases. Pick a target that suits your own plan and revisit it every few years as life and markets change.
A yearly check
Come back once a year with your new balance. Markets move. So do goals and income, and a plan that fit two years ago may not fit today. A short review catches a shortfall early, when small changes still have plenty of time to work.
Where to go next
Look at growth in more detail with the compound interest calculator. Add up assets and debts in the net worth calculator. To see target pay after tax, use the take-home pay calculator.
Frequently asked questions
How much do I need to retire in Canada?
It depends on the income you want, your other pensions and how long you need it. The calculator shows the gap.
What return should I use?
A cautious rate after fees. Historic averages vary, and results are not guaranteed.
Does the calculator include CPP and OAS?
No. Subtract expected government pensions from your target.
Why use today's dollars?
So you can compare the result with what you spend now.
What if I am short?
Save more, retire later, or plan for lower spending.
Is this financial advice?
No. It is an estimate for planning.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.