Retirement Calculator

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Retirement Calculator

See what your savings grow to by retirement, in future and in today’s money, whether they last to the age you plan for, the spending they can support and the extra monthly saving that closes a gap. Or work out the monthly saving you need.

Ages
Saving
Returns and inflation% a year, returns after fees
In retirementa year, in today’s money

Every figuretap a card to copy its value

Balance by age

Year by year

Each yearly return is spread over 12 monthly steps. Savings go in at the end of each month and rise once a year; withdrawals come out at the start of each month. Spending and other income are in today’s money and rise with inflation once a year. Returns are assumed steady every year and tax is not modelled. Amounts work in any currency. The CSV, image and printed report contain the values you entered, nothing preloaded.

How to use this tool

Enter your age, the age you plan to retire and the age the money must last to, then your savings, what you put away each month and how much you will raise that each year. Add the returns you expect before and during retirement, inflation, the spending you want once retired and any pensions, with the age they start. Choose "the monthly saving I need" to solve for the saving instead.

The input people most often get wrong is spending: enter it in today's money and let the calculator inflate it. Enter returns after fees but before inflation, which has its own box. Pensions, CPP, OAS and Social Security also go in at today's value; they are indexed to prices, so the tool raises them with inflation.

What the calculation is doing

The plan runs month by month, and the chart and table come from that simulation. A yearly return becomes the monthly rate that compounds to it, so 6% a year is 1.06^(1/12) − 1 = 0.4868% a month. Savings go in at the end of each month and rise once a year; in retirement, spending less any other income that has started comes out at the start of each month and rises with inflation once a year.

The headline figures use closed forms, which the simulation matches to a fraction of a cent. Balance at retirement: B = S × (1 + r)^Y + m × s × ((1 + r)^Y − (1 + c)^Y) ÷ (r − c), where S is today's savings, m the monthly saving, c its yearly raise and s = ((1 + i)^12 − 1) ÷ i turns a year of month end deposits at the monthly rate i into a year end sum. Balance needed: N = W × a ÷ 12 × (1 − q^n) ÷ (1 − q), with W the first year's withdrawal, a the value of 12 start of month payments of 1, n the years in retirement and q = (1 + inflation) ÷ (1 + return). If N exceeds B, the extra monthly saving is the gap divided by the multiplier on m; the sustainable spending makes N equal B. All of it assumes the same return every year, so the answer is a central estimate, not a promise.

Two panels. The left panel plots the balance from age 65 to 95 of $1,000,000 with $45,000 withdrawn in the first year and raised 2.5% a year, under the same thirty yearly returns averaging 5% in three orders: with the losses last it ends at $771,443, with a steady 5% every year at $210,438, and with −12%, −8% and +3% in the first three years it runs out at 88. The right panel plots the first year withdrawal rate a steady return can pay for 15 to 45 years, for returns 0 to 4% above inflation, with the 4% rule line crossing 30 years at a return of about 1.2% above inflation.
The losses first and losses last portfolios earn exactly the same average; the only difference is whether the bad years hit a full pot or a nearly empty one.

Sequence risk, the 4% rule and why a steady return flatters a plan

A steady 5% never happens. While you save, the ups and downs mostly even out. Once you withdraw, a fall early in retirement forces you to sell more units for the same spending, and those units miss the recovery. In the diagram, three portfolios earn the same thirty returns and finish anywhere from $771,443 left to empty at 88. The warning box runs a milder test on your plan: the first five years 4 points below your return, the later years making it up.

The 4% rule is the best known answer. William Bengen's 1994 paper in the Journal of Financial Planning used US stock and intermediate Treasury returns from 1926: with 50 to 75% in stocks, a first year withdrawal of 4%, raised with inflation after that, never ran out in under 33 years. At 5%, people who retired in the late 1960s and early 1970s had only about 20 years of money.

It is not a forecast or a guarantee. It was tested on 30 year periods of US data, with no fees and a fixed real withdrawal, and Scott, Sharpe and Watson (2008) note that fixed rules like it leave unspent surpluses in good markets and shortfalls in bad ones. The right panel shows how little it assumes: over 30 years, a steady return just 1.2% above inflation pays exactly 4%. The gap between your plan and the rule is roughly the margin the rule keeps for a bad start.

Fees can eat that margin. The FP Canada 2026 Projection Assumption Guidelines assume 2.1% inflation, 3.2% for fixed income and 6.3 to 6.6% for equities, before fees, and their balanced example nets 3.5% after 1.3% of fees. Against 2.1% inflation that supports only 4.1% over 30 years even with steady returns.

Savings needed for each $10,000 of yearly spending

The balance needed at the start of retirement for each $10,000 drawn from savings in the first year, raised with 2.5% inflation and taken monthly until the money is used up. The small figure is the first year withdrawal rate. Scale the balance to your own gap.

Years in retirement3% return4% return5% return6% return
20 years$188,476 5.3%$171,725 5.8%$157,081 6.4%$144,236 6.9%
25 years$232,798 4.3%$207,409 4.8%$185,876 5.4%$167,523 6.0%
30 years$276,054 3.6%$240,593 4.2%$211,402 4.7%$187,211 5.3%
35 years$318,271 3.1%$271,452 3.7%$234,031 4.3%$203,857 4.9%
40 years$359,473 2.8%$300,148 3.3%$254,091 3.9%$217,930 4.6%

When you start matters as much as the return. Below is the monthly saving needed from nothing, raised 2% a year, to draw $30,000 a year in today's money from 65 to 95 at the default returns and inflation. Starting at 25, growth supplies 71% of the balance; starting at 45 it supplies 45%, and the saving is 2.9 times as large.

Start saving atMonthly saving, first yearTotal saved to 65Share of the balance from growth
25$729$528,44971%
30$915$549,18666%
35$1,170$569,58260%
40$1,534$589,50653%
45$2,088$608,82545%
50$3,023$627,40536%
55$4,910$645,12125%

A worked example you can check on paper

This uses the default values. Growth to 65: the savings become 50,000 × 1.06^30 = 50,000 × 5.7435 = $287,175. At 0.4868% a month, a year of $1 month end deposits is worth s = 12.3265 at the year end, and the growing annuity factor is (1.06^30 − 1.02^30) ÷ (0.06 − 0.02) = (5.7435 − 1.8114) ÷ 0.04 = 98.3032. The monthly saving grows to 750 × 12.3265 × 98.3032 = $908,803, so the balance at 65 is $1,195,978. Prices rise by 1.025^30 = 2.0976, making that $570,174 in today's money.

What retirement needs: savings must cover $50,000 − $20,000 = $30,000 a year in today's money, or 30,000 × 2.0976 = $62,927 in the first year. Taken in 12 parts at the start of each month, a year's withdrawal is worth 0.98011 of its total at the start of that year, and the growing annuity factor is (1 − (1.025 ÷ 1.045)^30) ÷ (1 − 1.025 ÷ 1.045) = 22.9874. Needed at 65: 62,927 × 0.98011 × 22.9874 = $1,417,749.

The verdict: the shortfall is $221,772, and the month by month run empties the account at 89. Closing the gap takes 221,772 ÷ (12.3265 × 98.3032) = $183 a month more, raised 2% a year, for a total of $933. Or spending can fall to 20,000 + 1,195,978 ÷ (2.0976 × 0.98011 × 22.9874) = $45,307 a year. The 4% rule gives 0.04 × 1,195,978 = $47,839 in the first year, $22,807 in today's money, or $42,807 with the other income. The plan's first year draw is 5.26% of the balance, which is why a weak first five years brings the end forward to 85.

Mistakes that catch people out

Entering spending in future money. $50,000 of spending becomes $104,878 after 30 years of 2.5% inflation; type that figure and the calculator inflates it a second time. Enter what the lifestyle costs today.

Counting inflation twice. A return of 3% "after inflation" entered alongside 2.5% inflation leaves about half a point of real growth. Enter the ordinary return, after fees.

Planning to the average age. FP Canada gives a 65 year old man a 50% chance of reaching 89 and a 25% chance of reaching 94. A plan that ends at 85 has a real chance of running dry.

Leaving out fees. Taking 1.3 points off both returns in the default plan cuts the balance at 65 from $1,195,978 to $932,026 and brings the end forward from 89 to 80.

Treating a fixed pension as indexed. At 2.5% inflation a fixed $20,000 buys what $12,205 buys today after 20 years. If your pension has no indexing, enter a lower figure.

Popular calculations

Each opens the calculator with those figures. Unless stated they assume retirement at 65, a plan to 95, saving raised 2% a year, returns of 6% and 4.5%, 2.5% inflation, $50,000 of yearly spending and $20,000 of other income from 65.

Retirement plans by starting age

Age 25, $5,000 saved, $300 a month: runs out at 76Age 30, $25,000 saved, $500 a month: runs out at 82Age 35, $60,000 saved, $750 a month: runs out at 90Age 40, $120,000 saved, $1,000 a month: lasts to 95Age 45, $200,000 saved, $1,200 a month: lasts to 95Age 50, $300,000 saved, $1,500 a month: lasts to 95Age 55, $450,000 saved, $2,000 a month: lasts to 95

Retiring at 55, 60, 62, 65, 67 or 70

Retire at 55 from 40 with $150,000: runs out at 70Retire at 60 from 40 with $150,000: runs out at 90Retire at 62 from 40 with $150,000: lasts to 95Retire at 65 from 40 with $150,000: lasts to 95Retire at 67 from 40 with $150,000: lasts to 95Retire at 70 from 40 with $150,000: lasts to 95

Monthly saving needed to retire at 65

From 25 with nothing saved, for $50,000 a year: $729 a monthFrom 30 with $20,000 saved, for $50,000 a year: $828 a monthFrom 35 with $50,000 saved, for $60,000 a year: $1,323 a monthFrom 40 with $100,000 saved, for $50,000 a year: $1,008 a monthFrom 45 with $150,000 saved, for $60,000 a year: $1,877 a monthFrom 50 with $250,000 saved, for $50,000 a year: $1,173 a month

Spending levels from $250,000 at 45

$40,000 a year from $250,000 at 45: lasts to 95$60,000 a year from $250,000 at 45: lasts to 95$75,000 a year from $250,000 at 45: runs out at 86$100,000 a year from $250,000 at 45: runs out at 79

Is it enough to retire now?

$500,000 at 65, spending $50,000: runs out at 85$750,000 at 65, spending $50,000: lasts to 95$1,000,000 at 65, spending $60,000: lasts to 95$1,000,000 at 65, spending $80,000: runs out at 85$1,500,000 at 65, spending $90,000: runs out at 93$2,000,000 at 65, spending $100,000: lasts to 95$1,000,000 at 60, spending $60,000: runs out at 90

How this was checked

The closed forms were compared with a separately written month by month simulation on 4,000 random plans, including cases where the return equals inflation or the saving raise. The balance at retirement agreed to about one part in a trillion, and the balance needed, sustainable spending, solved monthly saving and extra saving each ran the balance to zero at the plan age when fed back in.

It also reproduces the Financial Consumer Agency of Canada example: $100,000 at 5% takes $243 a month over 20 years or $643 over 10, with $18,875 more interest from the longer period. At 5% compounded monthly the engine gives $243.29, $643.99 and, on the rounded amounts, $18,874.68. The 4% rule facts come from Bengen (1994) and Scott, Sharpe and Watson (2008), the assumptions and survival ages from FP Canada's 2026 guidelines, and benefit ages from Canada.ca and the Social Security Administration. Every popular calculation was loaded and checked for a distinct title, a matching address and no undefined values.

Common questions

How much do I need to retire?

Enough to cover the gap between your spending and your pensions. At 4.5% returns and 2.5% inflation, each $10,000 a year drawn over 30 years needs about $225,301 at the start. The 4% rule is more cautious: 25 times the first year's withdrawal.

What is the 4% rule, and is it safe?

William Bengen found in 1994 that with 50 to 75% in US stocks, a 4% first year withdrawal raised with inflation never ran out in under 33 years of the history since 1926. It is a rule of thumb for 30 year retirements, not a guarantee, and it ignores fees.

What return and inflation should I use?

FP Canada's 2026 guidelines assume 2.1% inflation, 3.2% for fixed income and 6.3 to 6.6% for equities, before fees. The Bank of Canada and the Federal Reserve target 2% inflation. Enter returns after fees, then try a point lower.

How long should I plan for?

Longer than average. FP Canada gives a 65 year old man a 25% chance of reaching 94, a woman 96, and a couple a 25% chance that one of them reaches 98, and suggests planning so the chance of outliving the money is 25% or less.

Should I include CPP, OAS or Social Security?

Yes, as other income in today's money with its start age. CPP can start from 60 to 70, cut 0.6% a month before 65 and raised 0.7% a month after; Social Security starts from 62, with full retirement age 67 for anyone born in 1960 or later. All three are indexed to prices.

Does the calculator include tax?

No. RRSP and RRIF withdrawals, and most 401(k) and traditional IRA distributions, are taxed as income, so include that tax in your spending.

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