Data Preparation Guide

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Last Updated: 2026-04-30 Classification: Public – User Guide

What to gather before using the Canadian Retirement Calculator. Most people can gather it all in about 1 to 2 hours.

Tip

Open the calculator in another browser tab while you work through this guide. That way you can enter numbers as you find them.

All dollar amounts mentioned below are in Canadian dollars.

1. Personal Information

Field

What to Enter

Where to Find It

Current age

Your age today

—

Planned retirement age

When you want to stop working

Your choice (typically 55–70)

Life expectancy

Age you expect to plan for

A reasonable estimate; the default is 95

Province

Your province of residence

See list below

Employment income

Current annual gross income

Your pay stub or T4

Mode

Single or couple

—

Province Codes

Select your province of residence from the list:

Code

Province

ON

Ontario

BC

British Columbia

AB

Alberta

QC

Quebec

SK

Saskatchewan

MB

Manitoba

NS

Nova Scotia

NB

New Brunswick

NL

Newfoundland and Labrador

PE

Prince Edward Island

YT

Yukon

NT

Northwest Territories

NU

Nunavut

Your province determines provincial tax rates, provincial drug plans, and seniors benefits.

2. Government Benefits

2a. CPP — Canada Pension Plan

CPP is a monthly retirement pension based on your contributions during your working years. It forms Pillar 2 of Canada’s three-pillar retirement system (the earnings-related pension layer).

How to get your estimated CPP amount:

  1. Go to My Service Canada Account (MSCA)

  2. Log in with your Sign-In Partner (bank) or GCKey

  3. Look for your CPP Statement of Contributions

  4. Find the estimated monthly amount at age 65

This estimate is your CPP monthly amount — enter it as a monthly dollar amount.

What if you can’t access MSCA? You can estimate your CPP by considering:

  • The current maximum at age 65 is $1,507.65/month (2026 value)

  • Most recipients receive less than the maximum — the average is roughly $750–$800/month

  • Your actual amount depends on how many years you contributed and your earnings level

When to start collecting CPP (CPP start age):

You can choose to start CPP between ages 60 and 70. Your choice permanently adjusts your monthly amount:

Start Age

Adjustment

Example on $1,000 base

60

−36%

$640/month

61

−28.8%

$712/month

62

−21.6%

$784/month

63

−14.4%

$856/month

64

−7.2%

$928/month

65

0% (baseline)

$1,000/month

66

+8.4%

$1,084/month

67

+16.8%

$1,168/month

68

+25.2%

$1,252/month

69

+33.6%

$1,336/month

70

+42%

$1,420/month

The reduction is 0.6% per month before age 65. The increase is 0.7% per month after age 65. Starting earlier means smaller payments for life; starting later means larger payments for life.

Tip

The asymmetry matters: Early CPP costs 7.2%/year in reductions, but delaying earns 8.4%/year in increases. This generally favors delaying for those in good health. The break-even age for starting at 70 vs 65 is approximately age 82. Try different start ages in the calculator to see the lifetime impact on your specific situation.

Factors that may increase your CPP beyond the basic calculation:

  • General drop-out provision: Up to 8 years of your lowest earnings are excluded

  • Child-rearing provision: Low-earning years while raising children under 7 may be excluded

  • Disability drop-out: Months on CPP disability are excluded

  • Post-retirement benefit (PRB): If you work while receiving CPP (under 70), contributions increase your pension automatically

  • Pension sharing: You can share CPP with your spouse to lower your combined taxes

  • CPP enhancement (2019+): Higher contribution rates since 2019 result in larger benefits for those who contributed under the enhanced system

Note

For couples: Enter CPP information for both partners separately.

2b. OAS — Old Age Security

OAS is a monthly benefit based on your years of Canadian residence after age 18 — it is not based on employment contributions. It forms Pillar 1 of Canada’s retirement system (the government safety net).

Eligibility: You need at least 10 years of Canadian residence after age 18 to qualify. Full pension requires 40 years. Automatic enrollment applies in most cases — Service Canada will contact you around your 64th birthday.

How to estimate your OAS amount:

The full OAS amount at age 65 is $743.05/month (2026 value). Your actual amount is prorated by your years of Canadian residence:

Formula: $743.05 × (years of residence ÷ 40)

Years of Residence

Monthly OAS at 65

10 years (minimum)

$185.76

15 years

$278.64

20 years

$371.53

25 years

$464.41

30 years

$557.29

35 years

$650.17

40 years (maximum)

$743.05

Enter your years of Canadian residence after age 18 as a number from 0 to 40.

OAS start age:

You can delay OAS from age 65 up to age 70. For each month you delay, your payment increases by 0.6% (up to +36% at age 70):

Start Age

Adjustment

Example on full $743.05

65

0%

$743.05/month

66

+7.2%

$796.55/month

67

+14.4%

$850.05/month

68

+21.6%

$903.55/month

69

+28.8%

$957.05/month

70

+36%

$1,010.55/month

OAS 10% boost at age 75: Your OAS automatically increases by 10% when you turn 75. You do not need to enter this — the calculator handles it.

Warning

OAS clawback (recovery tax): If your net income exceeds a threshold, you must repay part of your OAS at a rate of 15 cents per dollar. The clawback starts at \(93,454** net income (2025 income year) and fully eliminates OAS at approximately **\)152,062 (under 75) or $157,923 (age 75+). RRIF withdrawals, CPP, and all other taxable income count toward this threshold. The calculator handles this automatically, but it is a critical factor in your withdrawal strategy.

Important

Delaying OAS means you cannot receive GIS during the deferral period. If you expect to be eligible for GIS, start OAS at 65.

Note

If you have a custom CPP monthly amount that represents a custom override (not the MSCA estimate), you can enter it directly. The default OAS base is $743.05 but can also be overridden.

2c. GIS — Guaranteed Income Supplement

Tip

Good news: you don’t need to enter anything for GIS. The calculator automatically determines your eligibility and calculates the amount.

What you should know:

  • GIS is a tax-free benefit for low-income seniors (age 65+) who receive OAS

  • Maximum amounts (2026 values): $1,109.85/month for a single person; $668.08/month per person if both spouses receive OAS

  • GIS is reduced by 50 cents for every dollar of other income (excluding OAS itself)

  • Marital status affects the calculation — the calculator uses your single/couple mode

Important

GIS and your savings strategy: The 50% reduction rate means that for low-income retirees, every extra dollar of RRSP or RRIF income costs 50 cents in lost GIS — an effective marginal tax rate exceeding 50%. TFSA withdrawals do NOT affect GIS, making the TFSA the best savings vehicle for those who may be GIS-eligible in retirement. If you expect low retirement income, prioritize TFSA contributions over RRSP.

If your retirement income is projected to be low, the calculator will show GIS amounts automatically. GIS is recalculated each July based on your prior year’s net income, so file your taxes on time to avoid interruptions.

3. Account Balances and Savings

Gather your current account statements to fill in these values.

Current Balances

Account Types Explained

TFSA (Tax-Free Savings Account) — A registered account where investment growth and withdrawals are completely tax-free. TFSA withdrawals have no impact on OAS clawback, GIS eligibility, or any income-tested benefits. The 2026 annual contribution limit is $7,000.

RRSP (Registered Retirement Savings Plan) — A registered account that defers tax: contributions reduce taxable income now, but withdrawals are taxed as income in retirement. Must be converted to a RRIF by age 71.

Non-registered — Regular investment or savings accounts with no special tax treatment. Capital gains are 50% taxable when you sell; interest income is fully taxable.

FHSA (First Home Savings Account) — Designed for first-time home buyers. In this calculator, only include your FHSA balance if you do not plan to use it for a home purchase. Unused FHSA funds must be transferred to an RRSP and eventually a RRIF. For retirement planning purposes, an unused FHSA behaves like an extension of your RRSP.

Field

What It Is

Where to Find It

TFSA balance

Total in all Tax-Free Savings Accounts

Your bank or investment statements

RRSP balance

Total in all Registered Retirement Savings Plans

Your bank, investment firm, or pension statement

Non-registered (Cash)

Disposable cash savings only (savings accounts, GICs, money market). Do not include investment assets with capital gains

Bank statements

FHSA balance

Unused First Home Savings Account balance (only if you will NOT use it for a home purchase — converts to RRSP)

Your bank statements

Monthly Contributions

Field

What to Enter

TFSA monthly

How much you contribute to your TFSA each month

RRSP monthly

How much you contribute to your RRSP each month

Non-registered monthly

How much you save to non-registered accounts each month

FHSA monthly

How much you contribute to your FHSA each month (only if you will NOT use it for a home purchase — converts to RRSP)

Additional Contribution Details

  • Catch-up contributions: If you plan to make additional one-time or extra contributions (e.g., using unused TFSA room), note those amounts

Investment Return Rate

  • The calculator uses a default 5% annual return on investments

  • You can adjust this if your expected return is different (e.g., more conservative at 4% or more aggressive at 6%)

Note

2026 TFSA contribution room: Check the CRA website for the current year’s limit. The calculator uses historical TFSA limits built into its data.

4. Budget Categories — Detailed Breakdown

This is where most people spend the most time. Take your time here — accurate budget numbers produce accurate retirement projections.

Key Concepts

The budget is expense-oriented — it captures what you spend, not what you earn. Every amount you enter should reflect your actual out-of-pocket cost.

  1. Monthly values: Enter all amounts as monthly costs (not annual)

  2. Today’s dollars: Enter amounts in today’s dollars — the calculator automatically adjusts for inflation

  3. Out-of-pocket, including sales tax: Enter what you actually pay at the register, including GST/HST/PST. For example, an item priced at $100 in Ontario (13% HST) costs you $113 at checkout — enter $113.

  4. Comprehensive: Include every expense you expect — the calculator needs the full picture

Tip

Think of it this way: Open your bank and credit card statements. Every charge you see is an expense you should account for. The calculator needs the real, total cost — taxes included — to project accurately.

The Five Budget Categories

The calculator uses five categories. Every dollar you expect to spend should fall into one of them.

Category 1: Everyday Living

This covers your regular day-to-day expenses.

Include:

  • Groceries and food

  • Dining out, coffee shops, takeout

  • Clothing and footwear

  • Personal care (haircuts, toiletries)

  • Subscriptions (streaming, magazines, apps)

  • Phone and internet

  • Household supplies and cleaning products

  • Entertainment (movies, hobbies, clubs)

  • Gifts and charitable donations

  • Pet expenses (food, vet, insurance)

  • Miscellaneous / pocket money

Typical range: $1,000–$2,000/month per person

Category 2: Healthcare

Out-of-pocket medical and health expenses.

Include:

  • Prescription medications

  • Dental care (cleanings, fillings, dentures)

  • Vision care (glasses, contacts, eye exams)

  • Hearing aids and batteries

  • Medical equipment and supplies

  • Paramedical services (physiotherapy, chiropractor, massage)

  • Health insurance premiums (if not covered by employer or province)

  • Over-the-counter medications

Note

Provincial drug plan coverage varies significantly. Check your province’s plan:

  • Ontario: ODBP (Ontario Drug Benefit Program) — covers most prescriptions for those 65+

  • Other provinces have similar programs — search “[your province] seniors drug plan”

Typical range: $100–$300/month in early retirement; $300–$600/month in later years

Category 3: Travel

All travel and vacation expenses.

Include:

  • Vacations and getaways

  • Flights, trains, bus fare for trips

  • Hotels and accommodations

  • Travel insurance

  • Visiting family (in another city)

  • Seasonal trips (snowbird winters, cottage trips)

  • Cruises and guided tours

  • Dining and entertainment while traveling

Tip

Travel spending tends to be highest in the Go-go phase and drops significantly in later phases.

Typical range: $500–$3,000/month depending on lifestyle

Category 4: Transport

Daily transportation costs.

Include:

  • Car payment or lease

  • Gasoline or EV charging

  • Auto insurance

  • Maintenance and repairs (oil changes, tires, brakes)

  • Vehicle registration and licensing

  • Parking

  • Public transit passes

  • Taxi and rideshare (Uber, Lyft)

Tip

For car owners: Include an amortized vehicle replacement cost. For example, if you expect to buy a $30,000 car every 10 years, add $250/month ($30,000 ÷ 120 months) to your transport budget.

Typical range: $200–$1,000/month

Category 5: Housing

Typically the largest expense. Take extra care to be thorough here.

Shelter Costs

Expense

Notes

Mortgage (P+I) or rent

Principal + interest, or monthly rent

Property taxes

Annual amount ÷ 12

Home insurance

Annual ÷ 12

Condo / strata fees

If applicable — these often include some utilities

Utilities

Expense

Notes

Electricity

Monthly average

Natural gas / heating

Monthly average

Water and sewer

Monthly or quarterly ÷ 3

Internet and TV/cable

Monthly

Maintenance

Expense

Notes

Routine repairs

Rule of thumb: budget 1–2% of home value per year

Landscaping / snow removal

If you hire this out

Major Repairs Fund

Expense

Notes

Roof replacement

20–25 year lifespan — amortize the cost

HVAC system

15–20 year lifespan — amortize the cost

Appliances

10–15 year lifespan — amortize the cost

Calculating major repairs: Add up the expected replacement cost for each item, divide by remaining years of life, then divide by 12 for monthly. For example:

  • Roof replacement: $15,000 ÷ 20 years = $750/year = $62.50/month

  • HVAC replacement: $8,000 ÷ 15 years = $533/year = $44/month

Tip

Alternative approach: Instead of amortizing major repairs into your monthly housing budget, you can use the One-Time Expenses section (under the Assumptions tab) to schedule large expenses at specific ages. For example, schedule a $15,000 roof replacement at age 72. This avoids inflating your monthly budget for costs that only happen once.

Worked Example — Housing Budget (Ontario, paid-off home, $500,000 value)

Item

Monthly Amount

Property taxes ($4,800/yr ÷ 12)

$400

Home insurance ($1,800/yr ÷ 12)

$150

Electricity

$130

Natural gas / heating

$110

Water and sewer

$60

Internet and TV

$95

Routine maintenance (1% of value ÷ 12)

$417

Major repairs fund (roof \(62.50 + HVAC \)44 + appliances $25)

$132

Total Housing

$1,494

Warning

All amounts are out-of-pocket, including sales tax (HST/GST/PST). If your electricity bill includes HST, the amount you enter should include that tax.

Typical range: $1,000–$3,000/month (varies enormously by location and mortgage status)

5. Budget Phases

The calculator divides retirement into phases because spending changes over time. The default phases are:

Phase 1: Go-go (Active Years) — Ages 65 to 75

You are healthy, active, and spending on experiences.

Category

Default

Typical Pattern

Everyday Living

$1,420

Full spending

Healthcare

$210

Lower — generally healthier

Travel

$2,250

Highest — trips, vacations, visits

Transport

$805

Full — driving, travel

Housing

$1,590

Full housing costs

Phase 2: Slow-go (Settled Years) — Ages 75 to 85

You are slowing down, spending less on travel and activities.

Category

Default

Typical Pattern

Everyday Living

$1,420

About the same

Healthcare

$295

Rising — more medical needs

Travel

$1,250

Reduced

Transport

$445

Reduced — less driving

Housing

$1,510

Slightly lower (mortgage may be done)

Phase 3: No-go (Care Years) — Ages 85 to 95

Health needs increase, mobility decreases.

Category

Default

Typical Pattern

Everyday Living

$1,420

About the same

Healthcare

$420

Highest — increased care needs

Travel

$250

Minimal

Transport

$260

Minimal — may need assistance

Housing

$1,510

May include care costs

Customizing Phases

You can:

  • Rename phases (e.g., “Early Retirement”, “Part-time Work Years”)

  • Adjust age ranges for each phase

  • Add new phases for specific life stages

  • Modify all budget values in each phase

The defaults above are starting points. Replace them with your own estimates for the most accurate results.

5a. Budgeting Strategy — What to Think About

Accurate budget estimates are the foundation of a reliable retirement plan. Here is detailed guidance for each category to help you think through your own situation.

Everyday Living: Think About Your Real Spending

This is typically the largest expense and the easiest to underestimate.

  • Groceries: Track your actual spending for 3 months — most people guess 20–30% low. Inflation hits food hard; the calculator uses your inflation rate to project this forward.

  • Utilities: Hydro, water, gas, internet, phone, cell. These are mostly non-discretionary — they don’t drop much in later retirement.

  • Clothing and personal care: Drops significantly after you stop working (no office wardrobe), but may rise again if mobility aids or incontinence products are needed later.

  • Subscriptions and memberships: Netflix, gym, clubs, magazines, newspapers. Small individually but adds up to $100–200/month.

  • Pets: Food, vet bills, medication. Often forgotten in planning but can be $100–300/month.

  • Gifts and charity: Holiday gifts, grandchildren, donations. Many retirees find this increases.

Tip

Use 2–3 budget phases. Early retirement spending is often similar to working years. It tends to drop 10–20% in your late 70s as activity decreases, then rise again in late 80s if paid help is needed.

Healthcare: The Most Under-Budgeted Category

This is the #1 reason retirees run out of money. Most provincial plans (OHIP, RAMQ, etc.) do NOT cover drugs, dental, or vision.

  • Prescription drugs: If you have a workplace retiree plan, you’re partially covered. If not, budget $200–500/month for a couple, especially if either person takes ongoing medications.

  • Dental: Cleanings, fillings, crowns, dentures. A single crown can be \(1,000+. Budget \)150–300/month per couple even if nothing is wrong — dental costs are lumpy and unpredictable.

  • Vision: Eye exams (\(100–200), glasses (\)300–800), cataract surgery (covered by provincial plans, but premium lenses are not).

  • Hearing: Hearing aids are $2,000–5,000 per pair, not covered by most provincial plans. Often needed in your 70s–80s.

  • Private insurance premiums: If you buy individual health insurance in retirement, budget $200–600/month per couple depending on coverage level and age.

  • Mobility aids: Walkers, wheelchairs, home modifications (grab bars, ramps). Usually needed later in retirement.

Tip

Healthcare costs accelerate with age. Use budget phases with significantly higher healthcare in later phases (e.g., \(300/month at 65–75, \)500 at 75–85, $800+ at 85+).

Travel: The Go-Go, Slow-Go, No-Go Pattern

Most retirees over-estimate travel spending long-term. The “go-go years” are real but finite.

  • Early retirement (65–75): This is when most people travel heavily — snowbird trips, visiting grandchildren, bucket-list destinations. Budget $500–1,500/month if you plan to travel regularly.

  • Mid-retirement (75–85): Travel usually drops 40–60%. Longer flights become harder, health may restrict options. Budget $200–500/month.

  • Late retirement (85+): Minimal travel for most people. Budget $50–200/month for local outings, family visits.

  • Dining out and entertainment: Often grouped with travel but is really everyday spending. If you eat out 3x/week, that’s $400–600/month alone.

  • Hobbies: Golf, fishing, gardening, crafting, volunteering. Some are nearly free, others (golf memberships, equipment) can be $200–500/month.

Tip

This is the category with the most phase variation. Use at least 2–3 budget phases with decreasing travel amounts. Don’t plan to spend the same at 80 as at 65.

Transport: The Category Most Likely to Drop

Transport is the category most likely to drop significantly over the course of retirement.

  • Car ownership: Insurance (\(100–200/month), gas (\)100–200), maintenance (\(50–150), depreciation. One car costs ~\)400–700/month; two cars doubles it.

  • Will you still drive at 80+? Many people stop driving between 80–85. If you sell the car, this drops to near-zero (offset by taxi/rideshare costs).

  • Downsizing from 2 cars to 1: Common in early retirement. Saves $400–700/month immediately.

  • Public transit: Many cities offer senior discounts (50%+ off). Often $50–100/month.

  • Winter driving: If you’re a snowbird, you may need a car in both locations, or storage costs for the off-season vehicle.

Tip

Use decreasing transport amounts in later budget phases. Budget for 2 cars at 65, 1 car at 75, no car at 85 (with some taxi/ride costs).

Housing: Predictable or Uncertain?

Housing is either your most predictable or most uncertain expense, depending on your situation.

  • Mortgage payoff: If your mortgage ends before retirement, housing costs can drop $1,000–2,000/month. This is the single biggest retirement windfall most people get.

  • Property taxes: These never go away even after the mortgage is paid. Budget $200–500/month depending on your municipality. They tend to increase with inflation.

  • Condo fees: If you own a condo, fees typically rise 2–5% per year. Special assessments can add thousands unexpectedly.

  • Maintenance and repairs: Rule of thumb is 1–2% of home value per year. On a \(500K home, that's \)400–800/month. Most people don’t budget this.

  • Downsizing: Many retirees sell the family home and buy something smaller/cheaper. This can free up significant capital, but moving costs, realtor fees ($15,000–30,000), and setup costs eat into the gains.

  • Assisted living / long-term care: The big unknown. Private assisted living runs $3,000–6,000/month in most provinces. Long-term care homes are subsidized but have wait lists. This is the #1 reason to have a financial plan.

Tip

If you own your home, budget for ongoing maintenance even after the mortgage is gone. Use separate phases: mortgage payment at 65, no mortgage at 70+, potential downsizing/care at 85+.

Six General Budgeting Principles

  1. Use budget phases — your spending at 65 is not your spending at 85. The calculator supports multiple phases; use them.

  2. Plan for the “go-go, slow-go, no-go” years — high spending early, moderate in the middle, potentially high again late (healthcare/care costs).

  3. Don’t forget inflation — at 2.5% inflation, costs double in ~28 years. A \(3,000/month budget becomes \)6,000/month by the time you’re 90. The calculator handles this, but you need to enter amounts in today’s dollars.

  4. Include a buffer — most financial planners recommend planning to spend 80–90% of what you think you’ll have. Surprises happen.

  5. Separate one-time from recurring — a kitchen renovation is not a monthly expense. The calculator handles recurring monthly costs; plan major expenses separately using the One-Time Events feature.

  6. Revisit annually — your actual spending in the first year of retirement is your best data. Track it and adjust.

5b. Workplace Pensions (DBPP/DCPP)

If you have a workplace pension through your employer, gather the following information from your pension plan statement or HR department.

Defined Benefit Pension Plan (DBPP)

A DBPP guarantees a specific monthly income in retirement, usually based on a formula.

Information to gather:

Field

Where to Find It

Plan name

Your pension statement or employer HR portal

Years of service in plan

Your pension statement (total credited service)

Average salary (3-5 year average)

Your pension statement or pay stubs

Accrual rate (e.g., 1.5%-2%)

Your plan booklet or pension statement

Pension start age (earliest unreduced)

Your plan booklet (typically 55-65)

Bridge benefit amount (if any)

Your pension statement (paid until CPP starts at 65)

Bridge benefit end age

Usually 65 (when CPP begins)

Annual indexing/COLA rate

Your plan booklet (some plans index to inflation)

Survivor ratio

Your plan booklet (typically 50%-66.7%)

Common plans available as presets: Ontario Teachers’ (OTPP), OMERS, HOOPP, Federal Public Service, Canada Post/CUPW.

Two modes:

  • Formula mode: Enter your years of service, average salary, and accrual rate. The calculator computes the annual pension.

  • Manual mode: If your pension statement already shows the annual amount, enter it directly.

Defined Contribution Pension Plan (DCPP)

A DCPP accumulates contributions from you and your employer into an investment account. At retirement, the balance converts to a Locked-In Retirement Fund (LIF).

Information to gather:

Field

Where to Find It

Plan name

Your pension statement or employer HR portal

Current balance

Your most recent pension statement

Your contribution rate (%)

Your pay stub or plan enrollment

Employer contribution rate (%)

Your plan booklet

Employer match limit

Your plan booklet (e.g., match up to 5% of salary)

Estimated annual return (%)

Your plan’s default investment fund return

Conversion age (when it becomes a LIF)

Your plan booklet (typically 55-65)

Survivor ratio

Your plan booklet

Two modes:

  • Accumulation mode: Enter balance, contribution rates, and return. The calculator grows the balance and converts to a LIF at the conversion age.

  • Manual mode: If you know your expected annual pension amount (from a projection statement), enter it directly.

LIF (Locked-In Retirement Fund)

When a DCPP converts to a LIF at retirement, you must withdraw a minimum amount each year (similar to RRIF rules). The minimum is based on your age and province. Some provinces (Quebec, Saskatchewan) also impose maximum withdrawal limits.

Index Rate

Enter an annual index rate (%) if your pension is adjusted for inflation each year. Use 0% if there is no indexing. For CPI-linked plans, use your plan’s typical adjustment rate (often around 2%).

6. Additional Income Sources

If you have income beyond CPP, OAS, and GIS, enter each source separately.

For each source, you will need:

Field

What to Enter

Example

Label

A name for this income

“OMERS Pension”, “Rental Income”

Annual amount

Pre-tax annual amount

$24,000

Start age

When payments begin

65

End age

When payments end

95 (or life expectancy)

Taxable

Whether it’s taxable income

Yes / No

Common Income Sources

Employer Pension (Defined Benefit):

  • Check your pension statement for the estimated monthly or annual amount at retirement

  • Most employer pensions are taxable

  • Some have bridging benefits that end at 65 when CPP begins

Annuities:

  • Enter the guaranteed annual payment

  • Check whether it’s taxable (registered annuities are; non-registered depend on structure)

Rental Income:

  • Enter net rental income (rent minus expenses like property tax, insurance, maintenance)

  • Rental income is taxable

Part-time Work:

  • Estimate your expected annual earnings

  • Enter the start and end ages you plan to work

  • This is taxable income

Inheritance or Lump Sum:

  • Use the “Custom Injections” feature (see Section 8) for one-time amounts

  • Do not enter as ongoing income

7. One-Time Events

The calculator supports two types of one-time events:

Custom Injections (Money In)

Lump-sum deposits into a specific account at a specific age.

Examples:

  • Inheritance received at age 70

  • Sale of a second property at age 72

  • Life insurance payout

  • RRSP maturity transfer at age 71

For each, enter:

  • Label (description)

  • Amount

  • Account to deposit into (TFSA, RRSP, Non-registered, etc.)

  • Age at which it occurs

Custom Expenses (Money Out)

One-time costs at a specific age.

Examples:

  • Child’s wedding at age 68

  • Major home renovation at age 70

  • Vehicle purchase at age 73

  • Large gift or loan to family member

For each, enter:

  • Label (description)

  • Amount

  • Age at which it occurs

8. Mortgage and Housing Status

Select your housing situation:

Option

When to Choose

None

No housing costs (living with family, etc.)

Paid off

Own your home outright — no mortgage

Ongoing

Currently paying mortgage that will continue into retirement

Downsizing

Plan to sell and buy a less expensive home

With mortgage

Own with an active mortgage

If “Ongoing” or “With mortgage”: Enter your monthly mortgage payment and the age at which it will be paid off.

If “Downsizing”: Estimate your expected new housing costs for each budget phase.

9. Assumptions (Brief Overview)

These settings have sensible defaults, but you can adjust them:

Setting

Default

What It Controls

Withdrawal strategy

RRSP-first

Which accounts to draw from first — see below

Withdrawal priority order

Customizable

Order of account drawdown

Inflation rate

2%

Annual cost-of-living increase

Tax bracket indexing

Enabled

Tax brackets rise with inflation

Pension splitting

Available

Split pension income with spouse to reduce taxes

Income safety margin

Built in

Buffer in the simulation for market downturns

Withdrawal Strategy Options

Budget-Based (default): Only withdraw what is needed to cover your budget. This minimizes taxes and preserves capital in tax-advantaged accounts.

Fill the Bracket: After covering your budget, withdraw extra RRSP/RRIF funds up to the top of your current tax bracket. This is an RRSP meltdown strategy that reduces future mandatory RRIF withdrawals and smooths taxable income across more years.

Tip

Withdrawal order matters. For low-income retirees (GIS-eligible), draw from TFSA first since withdrawals do not affect GIS. For high-income retirees, draw from TFSA first to avoid triggering the OAS clawback. The calculator lets you customize the priority order in the Assumptions tab.

How Withdrawal Sequencing Works

Each simulation year, the calculator processes income in a fixed seven-tier order. The first six tiers are mandatory — they flow in automatically based on your start ages and plan rules, whether or not your budget needs them.

  1. CPP — government pension, taxable (start age 60–70).

  2. OAS — government benefit, taxable (start age 65–70).

  3. GIS — automatic for low income, non-taxable.

  4. DBPP — employer defined-benefit pension, taxable (start age set by plan).

  5. DCPP/LIF — employer defined-contribution pension, taxable (LIF minimums automatic).

  6. Other pensions and annuities — custom income sources.

  7. Portfolio accounts — only drawn if mandatory income does not cover the budget. You set the priority order of: Non-Reg Interest, RRIF, RRSP, Non-Reg Principal, TFSA, Unused FHSA → RRSP.

If mandatory income already exceeds the budget, no portfolio withdrawals occur. The “Withdrawal priority order” setting controls only the order of the six portfolio account types in tier 7 — it does not affect tiers 1–6.

Most users can leave these at their defaults. Adjust if you have specific preferences for withdrawal order or want to test different inflation scenarios.

10. Quick Reference: Where to Find Your Numbers

Data Point

Source

CPP estimate

My Service Canada Account

OAS residence years

Your own records — count years lived in Canada after age 18

TFSA/RRSP balances

Bank or investment statements

TFSA/RRSP contribution room

CRA My Account → “TFSA” and “RRSP” sections

Mortgage balance and rate

Your mortgage statement

Property taxes

Municipal property tax bill

Home insurance

Insurance policy documents

Vehicle costs

Insurance statement, repair receipts

Healthcare costs

Benefits statements, pharmacy receipts

Provincial drug plan

Search “[your province] seniors drug plan”

Employer pension

Your pension plan statement or HR department

Note

The dollar amounts used in this calculator are based on 2026 government figures (data version 2026.1) and are adjusted periodically. Always verify current amounts at canada.ca.

Sources and References

The Canadian Retirement Calculator produces estimates based on legislation, regulations, and published government data. The values used in the calculator are sourced directly from the following official references and are updated as new figures are published.

Federal Legislation and Regulation

Federal Tax and Benefit Data

Provincial Tax Data

Each province and territory sets its own tax brackets, basic personal amounts, age credits, pension credits, sales tax rates, and seniors benefit programs:

Province

Source

Ontario

https://www.ontario.ca/page/income-tax

British Columbia

https://www2.gov.bc.ca/gov/content/taxes/income-taxes/personal

Alberta

https://www.alberta.ca/personal-income-tax.aspx

Quebec

https://www.revenuquebec.ca/en/citizens/income-tax-return/income-tax-rates/

Saskatchewan

https://www.saskatchewan.ca/residents/taxes-taxation-and-rebates

Manitoba

https://www.gov.mb.ca/finance/taxes/index.html

Nova Scotia

https://novascotia.ca/finance/enhome/taxation/personalincometax/default.asp

New Brunswick

https://www2.gnb.ca/content/gnb/en/departments/finance/taxes/personal_income_tax.html

Newfoundland and Labrador

https://www.gov.nl.ca/fin/taxes-programs/personal-income-tax/

Prince Edward Island

https://www.princeedwardisland.ca/en/taxes-and-rebates

Yukon

https://yukon.ca/en/taxes-personal-income-tax

Northwest Territories

https://www.gov.nt.ca/finance/personal-income-tax

Nunavut

https://www.gov.nu.ca/finance/services/personal-income-tax

Personal Data Retrieval

Data Currency

All financial figures in this guide are current as of April 30, 2026, and are tagged with data version 2026.1. Government benefit amounts (OAS, GIS) are updated quarterly by Service Canada; tax brackets and credits are updated annually by the CRA; CPP maximums are updated annually in January.