Retirement Income Calculator

How Long Will Your Retirement Savings Last?

This calculator starts from the monthly income you want, subtracts what the Canada Pension Plan and Old Age Security will pay, and draws the rest from your savings. It then solves for how many months the portfolio can sustain that withdrawal while earning your chosen return, compounded monthly. Amounts are in today’s dollars and before tax: it does not model inflation, and RRSP/RRIF withdrawals, CPP and OAS are all taxable income.

Worked Example: $500,000 and a $4,000 Monthly Target

That withdrawal is $27,871.80 a year, or 5.6% of the starting balance — well above the 4% often quoted as a “safe” rate, and it only lasts because the example assumes a steady 4% return with no inflation. The 4% rule works the other way round: take 4% of the portfolio in year one ($20,000 on $500,000) and raise it with inflation afterward, which historically survived most 30-year periods.

Timing CPP and OAS

Your government benefits depend partly on when you start them. CPP can begin at 60 with a 0.6% reduction for every month before 65 (36% less at 60), or be deferred to 70 with a 0.7% increase per month (42% more). OAS can be deferred from 65 to 70 at 0.6% per month, up to 36% more, and rises by 10% at 75 ($827.17 a month in July–September 2026). The 2026 maximum CPP pension at 65 is $1,507.65 a month, but most people receive far less; the average for new retirees is about $925. OAS is clawed back at 15% of net income above $95,323, which is why retirees often draw from a TFSA, whose withdrawals do not count as income, to stay under that line.