Interpretation

Click Calculate to view the interpretation note.

Assumptions and disclosure

This calculator estimates whether your projected retirement savings may support a retirement spending target. In plain language, it asks: how much might you have by retirement, and how much might you need?

The estimate groups savings by account type: RRSP/LIRA-type accounts, TFSA, non-registered investments, and other savings. RRSP/LIRA-type accounts are shown before tax first, then reduced by the withdrawal tax rate you enter to estimate how much may be usable after tax. TFSA withdrawals are treated as tax-free.

For non-registered investments, the calculator uses the annual tax-cost percentage you enter as a simplified reduction for ongoing taxes on taxable interest, dividends, and realized capital gains. It does not separately model asset allocation, dividend tax credits, capital-gains inclusion rates, ACB tracking, or year-by-year realized gains.

Spending and income amounts entered in today's dollars are inflated to the planned retirement age. The savings target is the estimated amount needed at retirement to fund the gap between desired spending and income sources during retirement.

This is a simplified deterministic projection. It does not model contribution limits, unused contribution room, RRIF minimums, pension splitting, tax brackets, credits, OAS clawback, GIS, CPP/QPP eligibility, investment fees, sequence-of-returns risk, market volatility, changing spending patterns, or estate outcomes.

Educational information only. This tool is not financial, tax, legal, accounting, investment, retirement, estate, insurance, mortgage, or lending advice.