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Assumptions
- Inflation rate is assumed to be 2% annually and is applied to pension income and expenses.
- Expenses are entered in today’s dollars and adjusted for inflation at retirement.
- Projected annual pension is reflected in gross dollars (not net)
- Required savings to fund a retirement income gap are based on using available contribution room in tax advantaged RRSPs and TFSAs before using taxable saving accounts.
- Retirement income draw down strategies maximize the deferred taxation of RRSPs and TFSAs.
- OAS cannot be drawn before 65.
- CPP cannot be drawn before age 60.
- The average tax rate is set at 25%. Average income tax rates are assumed on income and registered plan withdrawals. Your tax rates will depend on your individual circumstances and will be different.
- The assumed life expectancy is set at 95. A rate of 12% has been applied to bridge reduction at 65. We assume a bridge benefit (OTPP, OMERS) which is intended to supplement your retirement income until age 65.
- The monthly OAS amount is $713.
- The effect of any potential OAS claw back is not illustrated.
- An annual maximum contribution limit to an RRSP of $2,500.
- An annual maximum contribution limit to a TFSA of $7,000.
- The investment rate of return is compounded monthly.
- Registered Retirement Income Fund (RRIF) payments are not illustrated.
- The results you received from this calculator are for information purposes only. The figures are not guaranteed, as they are based on assumptions that are certain to change.
Disclaimer
We want you to use and enjoy our website, but it is important that you understand:
This calculation is based on the accuracy and completeness of the data you have entered and a number of simplifying assumptions we have made, is for illustrative and general information purposes only, and is not intended to provide specific financial or other advice, and should not be relied upon in that regard. You should speak with an Educators Financial Group Financial Advisor before making a final decision to ensure any strategy meets your overall financial needs and that your personal circumstances have been considered.
Educators Financial Group does not make any express or implied warranties or representations with respect to any information or results in connection with the calculator. Educators Financial Group will not be liable for any losses or damages arising from any errors or omissions in any information or results, or any action or decision made by you in reliance on any information or results. Commissions, trailing commissions, management fees and expenses may all be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.
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*$25 Amazon.ca gift card promotion is subject to the terms and conditions available here, https://www.educatorsfinancialgroup.ca/2024-pension-income-gap-calculator-promotion-terms-conditions/
