Retirement plans are protection for your future prime of life. This calculator can illustrate the best appropriate retirement plan considering your current age and income. The graphs will then show your yearly contribution and the ending balance after retirement.
Your current age.
Age of retirement
This is the age you are supposed to retire. Assuming you don’t pay when you retire, your age of retirement minus 1 is the last time you will contribute to the plan. This calculator considers that you make all those contributions at the end of every year.
Gross annual income
The total family income. In case you are married, this income will also include what your spouse earns.
Current retirement savings
It’s the amount of your current savings that can be contributed to the plan excluding any pension fund receivables.
Rate of return before retirement
The yearly rate of return you gain from your investment and savings before retirement.
Rate of return during retirement
The yearly rate of return you receive from your post-retirement investment. If you want to withhold your money immediately after your retirement, this field should be left empty.
Percent of income to contribute
Part of you yearly income you are wishing to keep separate to invest in retirement plan.
Expected salary increase
This is the percentage of income you are expecting to increase.
Years of retirement income
The number of years you want to draw on from the retirement income.
Percent of income at retirement
This is the percentage income of working year’s you assume to be required during retirement. So, this amount is based on the income earned during the year before your retirement. Use 0% if you don’t need to have any money during the retirement from your last annual income.
Monthly Company Pension
The amount contributed by your employer to the pension fund. You can adjust this monthly employer’s contribution for any given rate of inflation automatically by choosing ‘monthly company pension adjusted for inflation’ option. So, the realized amount after retirement will be automatically updated for inflations.
CPP (Canada Pension Plan) or QPP (Quebec Pension Plan)
The CPP (Canada Pension Plan) or QPP (Quebec Pension Plan) is a guaranteed amount of money for workers who retire. But to avail this basic income you have to contribute to the CPP/QPP. The more amounts and the more times you have contributed to the CPP/QPP the more your realized amount will be. Your CPP payments will be increased or decreased depending on the time you start investing. Normally it increases if you start after the age of 65 and decreases if you start before 65. However, it is assumed that not before the age of 60 you start to receive from pension funds. Click here for more information.
RRSP (Registered Retirement Savings Plan)
This is savings plan offered to the Canadians by the Canadian government. Its main attribute is that it is tax deductible earning and can be earned by investing 18% from your last years income. In reality, by adjusting for your company pension fund (if available), ACalculator will save more than this.
Monthly OAS (Old Age Security)
This is a monthly benefit given to the Canadians. To be eligible for this monthly Old Age Security (OAS) you must reside in Canada at least 10 years after the age of 18 and your currently should be over 65. Under this facility, you have to repay amounts if somehow the net income exceeds a predetermined amount. Click here for more information.
Expected Rate of Inflation
The anticipated annual average rate of inflation for long-term.