10.4.2 Calculate retirement income

From Financial Consumer Agency of Canada

Well before you plan to retire, sit down and calculate how much you will need and how much you are likely to have. The sooner you do this, the better able you will be to adjust your projected needs and income, if necessary. You may wish to consult a financial professional for assistance in planning your finances for retirement. (See the section on Professional advice for retirement planning for more information.)

Henrik's retirement income

Henrik wonders what his total retirement income is.

This worksheet can help you estimate your total retirement income from various sources. It is filled out using the example of Henrik, who is planning for his retirement. The example shows Henrik's retirement income, based on the following assumptions:

  • Henrik earns $65,000 per year in salary.
  • He will receive the average monthly Canada Pension Plan (CPP) and Old Age Security (OAS) pension payment.
  • He does not qualify for the Guaranteed Income Supplement (GIS).
  • He has an employer pension.
  • He has savings held in both Registered Retirement Savings Plan (RRSPs) and Tax-Free Savings Accounts (TFSAs).
  • He has $275,000 in unsheltered savings, on which he receives interest of 4 percent per year.
  • He has not yet reached the age (71), when he will have to remove his savings from his RRSPs.

Henrik's retirement income

Income source I will have Monthly amount Yearly amount
CPP or Quebec Pension Plan (QPP) retirement pension $512.38 $6,148.56
OAS retirement pension $510.21 $6122.52
GIS (if applicable)
Employer pension $1,200.00 $14,400.00
Provincial benefits
RRSPs $700.00 $8,400.00
TFSAs $300.00 $3,600.00
Registered Retirement Income Funds (RRIFs)
Income from savings or investments $917.00 $11,004.00
Income from an annuity
Locked-in retirement account (LIRA) or life income fund (LIF)
Life insurance
Sale of home or property
Other income (property rental, business, royalties, inheritance, etc.)
Other
Total of income $49,675.08
My retirement needs $45,500.00
Difference between income and needs + $4,675.08

My retirement income

Use this worksheet to estimate your total retirement income from various sources. First, check off the ones you expect to have when you retire. Then enter the amount of money you expect to receive in each category below.

Income source I will have Monthly amount Yearly amount
CPP or QPP retirement pension
$
$0.00
OAS retirement pension
$
$0.00
GIS (if applicable)
$
$0.00
Employer pension
$
$0.00
Provincial benefits
$
$0.00
RRSPs
$
$0.00
TFSAs
$
$0.00
RRIFs
$
$0.00
Income from savings or investments
$
$0.00
Income from an annuity
$
$0.00
LIRA or LIF
$
$0.00
Life insurance
$
$0.00
Sale of home or property
$
$0.00
Other income (property rental, business, royalties, inheritance, etc.)
$
$0.00
$
$0.00
Total of income $0.00 $0.00
My retirement needs
$

$0.00

Difference between income and needs $0.00 $0.00

document

Download the interactive PDF and add it to your Financial Toolkit [PDF - 213KB]

Tips

  • To learn how to estimate the annual amount you will need for retirement, see the section titled Retirement needs. For a quick estimate, calculate 70 percent of your annual before-tax income for the three highest-earning years of your working life. Note that this is just a guideline and is not precise.
  • To learn more about public and private pensions and the benefits that you may be eligible for, see the section titled Public and private pensions.
  • For information on getting retirement income from personal savings and investments, see the section titled Savings for retirement.

For a more detailed and accurate estimate of your total retirement income and how well it will meet your retirement needs, use the Canadian Retirement Income Calculator from Service Canada.

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