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Retirement Savings Calculator

Estimate how much your retirement savings and investments will be worth at retirement, and see if you are on track to meet your goals.

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Your profile

  • Estimate the number of years you expect to need your retirement income for.

    According to Statistics Canada data as of 2012, males born in 2007 have an average life expectancy of 78.8 years, while females born in 2007 have an average life expectancy of 83.3 years.

  • Enter the pre-tax income you expect to receive in retirement, outside of your retirement savings and personal investments.

    You can include dividends you expect to receive from your medical professional corporation or investment holding corporation.

    This amount is assumed to increase annually at the rate of inflation. This could include pension income.

    If you do not expect to receive additional income in retirement, please enter “0” in this field.

    $
  • Estimate the pre-tax income you expect to need based on your retirement goals.

    This amount is assumed to increase annually at the rate of inflation.

    $

Your savings and investments

  • Enter the Fair Market Value of your RRSP(s).

    $
  • Enter the average monthly or annual contributions you plan to make to your RRSP(s) between now and retirement.

    The 2016 contribution limit is $25,370. If you enter an amount higher than this, you are assumed to have accumulated and carried over contribution room from previous years.

    $
  • Enter the Fair Market Value of your retirement savings and personal investments outside of your RRSP(s).

    This may include money or investments held in a tax-free savings account (TFSA), other savings and investment accounts, a permanent life insurance policy, etc.

    $
  • Enter the average monthly or annual contributions you plan to make to your non-RRSP savings and investments.

    If you’ve included dividends you expect to receive from your medical professional corporation or investment holding corporation in your additional income in retirement, do not include these amounts here.

    TFSAs have an annual contribution limit and contribution room that can be carried over from previous years.

    If you are entering contributions to TFSA(s), ensure you are not exceeding your personal contribution limit.

    $

Your rates of return and more

  • Enter the average annual return you expect to make on your savings and personal investments between now and your retirement age.

    %
  • Enter the average annual return that you expect to make on savings and personal investments after you retire. Once you have fully retired, your risk and return expectations may need to change. When you depend on your investments for income, less risk can protect your money, but results in lower potential return.

    %
  • The rate you expect your living expenses to increase by each year. Over the last 10 years, annual Canadian inflation rates have averaged approximately 1.8%. While annual inflation rates have been relatively low over the last two decades, over a long period of time, inflation has the power to depreciate the value of money.

    For example, if we assume 1.8% will be the inflation rate of the next 20 years, a current income of $50,000 will have the purchasing power of $35,000 in 20 years.

    %

Compare alternative plan

Your profile

  • Estimate the number of years you expect to need your retirement income for.

  • Enter the pre-tax income you expect to receive in retirement, outside of your retirement savings and investments.

    This amount is assumed to increase annually at the rate of inflation.This could include pension income.

    If you do not expect to receive additional income in retirement (not including, please enter “0” in this field.

    This amount is assumed to increase annually at the rate of inflation.

    $
  • Estimate the pre-tax income you expect to need based on your retirement goals.

    This amount is assumed to increase annually at the rate of inflation.

    $

Your savings and investments

  • Enter the Fair Market Value of your RRSP(s).

    $
  • Enter the average monthly or annual contributions you plan to make to your RRSP(s) between now and retirement.

    The 2016 contribution limit is $25,370. If you enter an amount higher than this, you are assumed to have accumulated and carried over contribution room from previous years.

    $
  • Enter the Fair Market Value of your retirement savings and investments outside of your RRSP(s).

    This may include money or investments held in a tax-free savings account (TFSA), other savings and investment accounts, a permanent life insurance policy, etc.

    $
  • Enter the average monthly or annual contributions you plan to make to your non-RRSP savings and investments.

    TFSAs have an annual contribution limit and contribution room that can be carried over from previous years.

    If you are entering contributions to TFSA(s), ensure you are not exceeding your personal contribution limit.

    $

Your rates of return and more

  • Enter the average annual return you expect to make on your non-RRSP savings and personal investments between now and your retirement age.

    %
  • Enter the average annual return that you expect to make on savings and personal investments after you retire. Once you have fully retired, your risk and return expectations may need to change. When you depend on your investments for income, less risk can protect your money, but results in lower potential return.

    %
  • The rate you expect your living expenses to increase by each year. Over the last 10 years, annual Canadian inflation rates have averaged approximately 1.8%. While annual inflation rates have been relatively low over the last two decades, over a long period of time, inflation has the power to depreciate the value of money.

    For example, if we assume 1.8% will be the inflation rate of the next 20 years, a current income of $50,000 will have the purchasing power of $35,000 in 20 years.

    %

Results

Your plan
Savings goal:
Projected savings:
Projected shortfall Projected surplus:
will provide you with an annual retirement income of over years.
Additional RRSP contributions required to meet savings goal:
Additional contributions to other savings and personal investments required to meet savings goal:
Alternative plan
Savings goal:
Projected savings:
Projected shortfall Projected surplus:
will provide you with an annual retirement income of over years.
Additional RRSP contributions required to meet savings goal:
Additional contributions to other savings and personal investments required to meet savings goal:

These numbers do not account for annual personal income tax on your personal investment income, which can significantly impact your results.

Projected shortfall Projected surplus

This chart is presented for illustrative purposes only and is not indicative of any investment. Past performance is no guarantee of future results.

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Assumptions
The average inflation rate is based on historical changes in the Consumer Price Index, Statistics Canada, CANSIM, table 326-0021 and Catalogue nos. 62-001-X, 62-010-X and 62-557-X. While annual inflation rates have been relatively low over the last two decades, over a long period of time, inflation has the power to depreciate the value of money.

For example, if we assume the average inflation rate of the last 10 years, which was 1.8% (low by historical standards), will be the inflation rate of the next 20 years, a current income of $50,000 will have the purchasing power of $35,000 in 20 years.

This calculator allows for contributions that may exceed the annual maximum contribution limits for registered accounts set by the Canadian government, to accommodate those who have additional contribution room carried over from previous years. When using this calculator and planning for future contributions, please ensure that you do not exceed your personal contribution limit.

All dollar amounts listed above should be considered pre-tax.

All dollar figures are in Canadian funds, and this calculator does not have functionality to account for foreign exchange.

This calculator rounds to the nearest dollar.

Disclaimer
The information presented here is not intended to offer foreign or domestic taxation, legal, accounting or similar professional advice, nor is it intended to replace the advice of independent tax, accounting or legal professionals. Incorporation guidance is limited to asset allocation and integrating corporate entities into financial plans and wealth strategies. Any tax-related information is applicable to Canadian residents only and is in accordance with current Canadian tax law including judicial and administrative interpretation. The information and strategies presented here may not be suitable for U.S. persons (citizens, residents or green card holders) or non-residents of Canada, or for situations involving such individuals. Employees of the MD Group of Companies are not authorized to make any determination of a client’s U.S. status or tax filing obligations, whether foreign or domestic. MD Financial Management provides financial products and services, the MD Family of Funds and investment counselling services through the MD Group of Companies. MD Financial Management Inc. is owned by the Canadian Medical Association.