How much do I need to retire in Canada?

A common rule of thumb is the 4% rule: you need about 25 times the annual income your savings must provide. Crucially, that's the income after CPP and OAS — if you want to spend $60,000 a year and government benefits cover $22,000, your portfolio only has to fund the $38,000 gap, so the target is roughly $950,000 (38,000 ÷ 4%). Lower your spending or count on more CPP/OAS and the number drops fast.

The 4% rule says you can withdraw 4% of your portfolio in the first year of retirement, then adjust that dollar amount for inflation each year, with a high chance the money lasts 30 years. It came from U.S. research but is widely used in Canada as a starting point. Some Canadian planners prefer a slightly more conservative 3.5% given longer lifespans and lower expected returns. Use the withdrawal-rate slider to see how sensitive your target is.

Yes — and it makes a big difference. CPP and OAS are inflation-indexed, lifetime income, so every dollar they provide is a dollar your portfolio doesn't have to. The average CPP plus full OAS is often in the $18,000–$25,000/year range per person, though your CPP depends on your contribution history. Check your CPP estimate in your My Service Canada Account and enter the combined figure here.

The target nest egg is expressed in today's dollars — it's 25× the spending gap you enter now. We also show the future-dollar equivalent using your inflation assumption, so you can see what that target looks like as a sticker price in your retirement year. The savings projection grows your balance and contributions at your assumed real (after-inflation) return so the on-track comparison stays in today's dollars.

The calculator works backward from your target: it projects what your current savings will grow to, finds the shortfall, and computes the monthly contribution needed to close it by your retirement date. Start earlier and the monthly number is dramatically smaller, because compounding does more of the work. Waiting ten years can easily double the required monthly savings.

For a 30-year retirement, 4% is the classic figure. If you're retiring early (40+ years) or want extra safety, use 3% to 3.5%, which raises the target. If you have a shorter horizon or guaranteed pensions covering essentials, you might use 4.5% to 5%. The sensitivity table shows the nest egg required at each rate so you can see the trade-off at a glance.

Not directly. The spending figure you enter should be your after-tax spending need, and remember that withdrawals from an RRSP or RRIF are taxable while TFSA withdrawals are not. Where your savings sit changes how much pre-tax you actually need. Use the RRSP and TFSA calculators to plan the account mix, and treat this tool as a top-line estimate.

Then you may need very little invested to retire — the 4% target only applies to the spending your portfolio must fund. This is common for modest lifestyles or households with two full CPP/OAS streams. You'd still want a cushion for one-off costs, healthcare, and inflation surprises, but the pressure to amass a large nest egg drops sharply.

No. It's an educational top-line estimate based on simple rules of thumb. Real retirement planning involves your tax situation, the sequence of investment returns, healthcare and longevity, pensions, and changing spending through retirement. For a fuller picture try the detailed planner, and consider speaking with a fee-only advisor before making decisions.