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Retirement savings account calculator - assumptions

The following assumptions are built into the formulas that calculate your savings goal and projected savings in this tool. When you are ready to explore your retirement and investment options in greater detail, a Financial advisor can help you understand these and other formulas, for building your unique plan.

  • We're assuming an annual inflation rate of 2%
  • All monetary inputs are assumed to be pre-tax amounts
  • The investment return of non-registered assets is reduced by taxes
  • All registered investments are made into non-locked-in funds(no fee to withdraw)
  • OAS claw-back rules are not considered
  • It is assumed that Canada Pension Plan/Quebec Pension Plan (CPP/QPP) is payable based on 53% of the maximum limit payable (based on national averages); for OAS, the comparable figure used is 90%
  • Where we ask you for account balances, we are assuming you will receive a full year of investment return
  • Contributions and withdrawals are assumed to be mid-year, and therefore receive only 6 months of investment return
  • There are no explicit contributions made to defined benefit pension plans
  • All monetary inputs are assumed to increase by inflation each year except for the defined benefit pension, where the inflation adjustment ceases once retirement begins
  • If retirement is postponed beyond the latest commencement date of Canada Pension Plan/Quebec Pension Plan (CPP/QPP), or postponed past the commencement date of Old Age Security (OAS), past payments are not reflected in any savings calculations
  • Where we ask for the number of years in retirement you're saving for, it is assumed that payment will be made for each of those years (including the last)