10.6.1 Your retirement planning worksheet

From Financial Consumer Agency of Canada

Step 1: Determine your retirement age.

Questions to consider:

  • Do you enjoy your job and are you able to continue working?
  • When would you like to start collecting your public government pension?
    • You will receive a lower monthly Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) payment if you start collecting between 60 and 65. You won't qualify for the Old Age Security (OAS) until 65.
    • If you retire before the age of 60, will you have enough to live on until your CPP/QPP kicks in?
    • Are you willing to accept the lower monthly payment in return for payments over a longer period of time?
  • How is your health?
  • Do you have to take care of parents or children?
    • You may have to stop working temporarily to take care of them.
    • On the other hand, you may have to work longer to support them.

Step 2: Determine the expenses you will have in retirement.

Complete a current budget and use it to project your expenses during retirement. For a budget worksheet, see the section titled Retirement needs, or go to the Financial Consumer Agency of Canada's Budget Planner.

Tip

When calculating your future expenses, don't forget to take inflation into account.

Step 3: Determine the sources of income you will be able to rely on.

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
Guaranteed Income Supplement (GIS) (if applicable)
$
$0.00
Employer pension
$
$0.00
Provincial benefits
$
$0.00
Registered Retirement Savings Plan (RRSP)
$
$0.00
Tax-Free Savings Account (TFSA)
$
$0.00
Registered Retirement Income Funds (RRIFs)
$
$0.00
Income from savings or investments
$
$0.00
Income from an annuity
$
$0.00
Locked-in retirement account (LIRA) or life income fund (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
Projected retirement needs (step 2)
$

$0.00

Step 4: Compare your projected income with your estimated needs.

The difference between the annual amount in Step 2 and the annual amount in Step 3:

$0.00

Step 5: Plan how to make up for a shortfall if you have one.

Options include:

  • You can continue working for another year or more.
  • You can look for alternative sources of income (part-time work, home-based business, etc.).
  • You can modify your lifestyle expectations.
  • If you own your home, you may be able to sell it and purchase a smaller home, rent it and move to a less expensive residence, or rent part of it for added income.
  • You can adjust your investments for higher returns. (But higher returns usually come with higher risk. Get professional advice if you want to do this.)
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