The purpose of this calculator is to enable you to determine the future value of your retirement savings. By selecting various options, you can calculate how much to save per year, for how many years, given an assumed starting amount, in order to generate a retirement income for a number of years. Simply enter values in all fields except the one you wish to calculate and the system will compute the answer.
It is recommended that you seek professional advice concerning Retirement Savings Plan contribution limits, investment options available, and strategies for wise investing for your financial situation.
As an example of how to use the Retirement Calculator, you could calculate how much you would have to save to withdraw a required amount during your retirement years. To properly compute the value of future dollars, you should include factors to account for inflation, the rate of return for your investment, the number of years before the money would be needed, additional contributions you plan to make, and the number of years you anticipate that your investment might be required to provide for your future needs. You can also include a figure, if desired, regarding a residual amount of money that you would like to have remaining in your RRSP upon your death.
Enter all the numbers that you know, and estimate the unknowns. Consider that the long-term inflation rate has typically ranged between 2-3% and that when inflation rates are relatively low, achieving an overall 8% rate of return could be considered quite good. As inflation and interest rates go up, it is conceivable that a higher rate of return on a conservative investment could be achieved. But this is merely a guideline, and you should enter whatever values are reasonable given the environment. Again, professional advice is highly recommended here.
- For every item in the table, either type a value into the left-hand box, or highlight and click on a value from the drop-down list on the right. Numbers selected from the drop-down list will appear in the right-hand box.
- Ensure that a value has been entered for every item in the table, except for the one you wish to calculate, even if it is only zero.
- Select "Solve" from the drop-down list for the remaining field that you wish to calculate.
- Click on "Calculate".