Canadian Retirement Planning: The Real Numbers
The average Canadian retires at 64.6 years and lives to 83 — meaning you need roughly 18 years of income from your portfolio. At a $60,000 annual target, that's $1.08 million minimum with zero investment growth. Factor in inflation and a longer-than-average life, and the number climbs fast.
The 4% safe withdrawal rule
This calculator uses the 4% rule — a landmark finding from the Trinity Study showing that a portfolio withdrawing 4% annually has historically survived 30+ years in 95%+ of market scenarios. For a $1 million portfolio, that's $40,000/year in income. Conservative retirees often use 3.5% to add buffer.
CPP and OAS: your guaranteed income floor
Your portfolio doesn't need to cover everything. CPP in 2025 averages $831/month ($9,972/year) for new retirees, with a maximum of $1,364.60/month. OAS adds up to $713.34/month at age 65, increasing to $784.67/month at 75. Combined, that's potentially $25,000+ annually before touching your savings.
Benchmarks by decade
| Age | Target (× your salary) | Example ($80K salary) | Key action |
|---|---|---|---|
| 30 | 0.5× | $40,000 | Start investing — time is your biggest asset |
| 40 | 1.5× | $120,000 | Maximize RRSP, review asset allocation |
| 50 | 3× | $240,000 | Catch-up contributions, reduce fees |
| 60 | 6× | $480,000 | Plan CPP timing, build income strategy |
| 65 | 8× | $640,000 | Coordinate RRIF, CPP, OAS, TFSA drawdown |
The contribution vs compounding split
What surprises most people: at 7% over 30 years, investment growth exceeds your total contributions by 3–4×. Someone who contributes $500/month for 30 years puts in $180,000 — but ends up with $567,000. The extra $387,000 came entirely from compounding. This is why starting early matters more than contributing more later.
What if I'm behind?
If the calculator shows a shortfall, the levers are: increase monthly contributions, delay retirement by 2–3 years (dramatically improves outcomes), reduce target income, or optimize your investment mix to reduce fee drag. Our advisors regularly find $200–400/month in hidden MER costs that, eliminated, close significant retirement gaps.