Retirement & Pensions Planner

Combine pensions, government benefits, and savings to estimate your retirement income, funding gap, and how much you need to save.

Educational tool only. Not tax, investment, or pension advice.

Retirement income planner

Years until retirement: 25

Years in retirement: 25

$
75%

Target annual retirement income: $60,000

5.0%
4.0%
2.0%

Guaranteed income at retirement per year (today's dollars)

$
$

Examples: CPP/QPP, OAS, Social Security, state pensions.

$

Rental income, part-time work, annuities, etc.

Savings & investments today's dollars

$
$

Include employer matching if applicable.

Results overview

Target income

$60,000 /yr

In today's dollars, before tax.

Projected income

$52,000 /yr

Guaranteed + sustainable withdrawals.

Annual gap / surplus

$8,000 gap

You may need to save more, retire later, or spend less.

Projected savings at retirement

$0

Future value of current savings and contributions.

Implied withdrawal rate

0%

Annual withdrawals ÷ savings at retirement.

What this means

Adjust the inputs and click “Calculate” to see whether you are on track for your target retirement income.

How the retirement & pensions planner works

This tool brings together three pillars of retirement income:

  • Employer pensions – defined benefit (DB) or defined contribution (DC) plans.
  • Government benefits – such as CPP/QPP, OAS, Social Security, or state pensions.
  • Personal savings & investments – RRSPs, TFSAs, IRAs, 401(k)s, brokerage accounts, and cash.

You choose a target income as a percentage of your current earnings, then estimate how much of that target can be covered by guaranteed income and sustainable withdrawals from your savings.

Step 1 – Set your time horizon

Use Current age, Retirement age, and Plan until age to define:

  • Years until retirement – how long your savings can grow.
  • Years in retirement – how long your income needs to last.

Step 2 – Choose your target retirement income

Many households aim for 70–80% of pre-retirement income, but your needs may be higher or lower. The slider sets a replacement rate, and the calculator computes:

Target annual income = Current income × Replacement rate

Step 3 – Add pensions and government benefits

Enter the annual amounts you expect to receive from:

  • Employer pensions – use estimates from your plan statements or online pension portal.
  • Government benefits – use official calculators for your country or region.
  • Other income – rental income, annuities, part-time work, etc.

These are treated as inflation-adjusted, guaranteed income that continues throughout retirement.

Step 4 – Model your savings and investment growth

The planner projects your retirement savings using a compound growth formula:

Let:

  • \( S_0 \) = current savings
  • \( C \) = annual contribution
  • \( r \) = expected annual return (before retirement)
  • \( n \) = years until retirement

Then projected savings at retirement are approximated by:

\( S_{\text{retire}} = S_0 (1 + r)^n + C \times \dfrac{(1 + r)^n - 1}{r} \)

You can adjust the expected return and inflation assumptions to see how they affect your outlook. More conservative assumptions (lower returns, higher inflation) give a safer plan.

Step 5 – Convert savings into retirement income

During retirement, your savings are drawn down over a number of years. The planner uses an annuity-style formula to estimate a sustainable annual withdrawal:

Let:

  • \( S_{\text{retire}} \) = savings at retirement
  • \( r_{\text{ret}} \) = expected annual return during retirement
  • \( m \) = years in retirement

Then the approximate annual withdrawal is:

\( W = S_{\text{retire}} \times \dfrac{r_{\text{ret}}}{1 - (1 + r_{\text{ret}})^{-m}} \)

The calculator then adds this withdrawal to your guaranteed income to estimate your total projected retirement income.

Understanding the results

  • Target income – what you would like to spend each year in retirement.
  • Projected income – pensions + government benefits + sustainable withdrawals.
  • Annual gap / surplus – how far above or below your target you are.
  • Implied withdrawal rate – projected withdrawals ÷ savings at retirement.

A very high withdrawal rate (for example, above 5–6% in real terms) may be difficult to sustain over a long retirement, especially if markets underperform. A lower rate gives more flexibility and resilience.

Tips for improving your retirement readiness

  • Increase savings – raise your annual contributions or capture full employer matching.
  • Delay retirement – working longer shortens the retirement period and lets savings grow.
  • Adjust lifestyle – lowering your target income can close the gap.
  • Optimize pensions – understand early/late retirement options and survivor benefits.
  • Diversify investments – avoid concentrating risk in a single asset or sector.

Limitations and important notes

This planner is intentionally simplified. It does not model taxes, detailed pension rules, changing spending patterns, health care costs, or investment risk. Actual outcomes will differ from projections. Always refer to official pension documentation and consider consulting a qualified financial planner before making major decisions.

Retirement & pensions FAQ

How much do I need to retire?
A common starting point is to target 70–80% of your pre-retirement income, but this can vary widely. If you will be mortgage-free, have no dependants, and expect modest spending, you may need less. If you plan to travel extensively or support family members, you may need more. Use the calculator to compare your target with your projected income and adjust until the plan feels realistic.
What counts as retirement income in this planner?
The planner includes:
  • Employer pensions (DB or DC plans).
  • Government benefits (CPP/QPP, OAS, Social Security, state pensions, etc.).
  • Other recurring income such as rental income, annuities, or part-time work.
  • Withdrawals from your savings and investments.
One-time lump sums or inheritances are not modeled separately, but you can add them to your current savings or adjust contributions to approximate their effect.
What investment return and inflation assumptions should I use?
There is no single “correct” assumption. Historically, diversified stock portfolios have returned more than bonds or cash, but future returns may be lower. Many planners use:
  • 4–6% nominal return with 2–3% inflation, or
  • 3–4% real return (after inflation).
If you want a more conservative plan, lower the return or increase the inflation assumption. You can also run multiple scenarios (optimistic, base case, conservative) to see a range of outcomes.
What is a safe withdrawal rate from my savings?
The well-known 4% rule suggests that withdrawing 4% of your initial portfolio value in the first year of retirement and adjusting for inflation each year has historically worked for many 30-year retirements in U.S. data. However:
  • It is based on past returns that may not repeat.
  • It assumes a specific asset mix and fee level.
  • It does not adapt withdrawals to market conditions.
Use the implied withdrawal rate shown in the results as a guide, not a guarantee. If your rate is much higher than 4–5%, consider saving more, working longer, or lowering your target spending.
Can this calculator replace professional financial advice?
No. This tool is for education and planning only. It simplifies many important considerations such as:
  • Tax rules and pension legislation in your country or province/state.
  • Investment risk, fees, and asset allocation.
  • Health care costs, long-term care, and insurance needs.
  • Estate planning, survivor benefits, and inflation protection.
For personalized recommendations, speak with a licensed financial planner or pension specialist who understands your full situation.