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RRIF / LIF

Retirement planning

Introduction

This calculator will assist you with planning for your retirement. Retirement planning consists of:

  • Selecting the age at which payments should begin. This would be generally between 55 and 69.

  • Determining how much income you would like to retire with. This would be your target. It is generally accepted that 65% to 75% of your final salary would be adequate. By default this is set to 50% of your final salary. Because this tool does not consider the pension payable from an employer's pension plan, the percentage selected should reflect such amount, if any. For example, if you estimate that your employer's pension plan will pay you an annual pension representing 30% of your final salary, you would select 40% if your target is 70%.

  • Identifying your sources of retirement income. Typical sources of income include: employer pension plan, RRSP's and government programs such as Canada Pension Plan and Old Age Security.

  • Projecting these sources of income.

  • Comparing your retirement income target against your projected income to determine if there is a gap.

  • If there is a gap, determining the additional annual savings required to meet your target.

Select the appropriate parameters and click CALC below

For more Help
Personnal information
Current age 18 - 65
Spouse's age Input your spouse's age. This age is used when you select a pension form with a % payable to spouse, otherwise it is ignored (see Parameters section)
Salary Select your annual salary rate
Parameters
Target Select your target retirement income as a percentage of your final salary (25% à 100%)
C/QPP at Age at which you want to begin to receive your C/QPP pension (60 to 65)
RRSP at Age at which you want to start liquidating your RRSP (55 to 69)
Savings at Age at which you want to start liquidating your savings (55 to 69)
Pension form Select the pension form to convert accumulated RRSP and savings assets into an annuity at retirement. Choices are: lifetime, 5, 10 or 15-year guarantee or 50%, 60%, 66 2/3%, 75% ou 100% pension to surviving spouse
Index Select YES if you want to index at the inflation rate the TARGET, the C/QPP and the OAS
Assumptions
Inflation The inflation is used to establish your total investment return and salary increase as indicated below
Return Annual rate of return on invested assets. This rate is established in relation to the inflation rate
Salary
increase		 Annual rate of salary increase. This rate is established in relation to the inflation rate
RRSP (registered plan)
RRSP assets Input accumulated RRSP assets as of today
Annual contribution Select your annual RRSP contribution expressed as a percent of your annual salary. If the percentage selected results in an annual contribution greater than the maximum annual contribution under the tax rules, the actual contribution considered is limited to such maximum, for example $13,500.
Savings (non-registred plan)
Savings Input accumulated savings as of today. These assets are not tax-sheltered.
Annual contribution Select your annual savings rate as a percent of your annual salary. Your annual contribution is not limited in a way similar to your RRSP contribution as explained above.
Click OK to calculate
Show introduction Select YES to display INTRODUCTION
Show input table By default, this input table is shown when you ask for a calculation. Select No to view only the result: this accelerates the display


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