Retirement Savings Calculator
See exactly how long your Canadian retirement savings will last. Enter your savings, monthly spending, CPP/OAS income, expected return, and inflation rate for an instant month-by-month projection. Includes confidence score, Chart.js balance visualization, scenario comparison, and AI-powered retirement insights.
Your Retirement Details
Analyzing your retirement outlook...
Spending Scenario Comparison
| Monthly Spending | Net from Savings | Savings Last Until | Years of Coverage | Assessment |
|---|---|---|---|---|
| Calculating scenarios... | ||||
How Long Will My Retirement Savings Last in Canada?
The most important retirement planning question is not "how much do I have?" but "how long will it last?" This calculator runs a month-by-month simulation of your retirement balance, accounting for investment growth, inflation-adjusted spending increases, and fixed income like CPP and OAS. It tells you exactly how many years your savings will support your lifestyle.
How the Calculation Works
Each month, your retirement balance goes through three changes:
- Grows by your expected investment return (divided by 12 for monthly compounding)
- Decreases by your inflation-adjusted monthly spending — increased by the inflation rate each month to maintain your real purchasing power
- Offset by CPP, OAS, or pension income that reduces how much your portfolio needs to provide
The 4% Rule for Canadians
The traditional 4% safe withdrawal rule — withdraw 4% of your starting portfolio in Year 1, then adjust for inflation — was designed for US markets over a 30-year horizon. For Canadians, the picture is often better. CPP and OAS provide guaranteed, partially inflation-indexed income that significantly reduces your portfolio's burden.
- CPP maximum (2026): approximately $1,364/month at age 65 with full contributions
- OAS maximum (2026): approximately $713/month at age 65 — deferred to 70 adds 36%
- Combined: up to $2,077/month, often covering a large share of monthly spending
What Matters Most for Retirement Longevity
- Monthly spending is the single biggest driver. Reducing spending by $300–$500/month can add 5–10 years to your savings.
- CPP/OAS income dramatically extends savings. $1,500/month in government benefits reduces your portfolio draw by $18,000/year.
- Investment return matters significantly over long horizons. 5% vs 7% on $500K creates over $200,000 in difference after 20 years.
- Inflation at 3%+ seriously erodes purchasing power. $3,000/month today costs the equivalent of $4,800/month in 15 years at 3% inflation.
How This Calculator Works
Data integrity: This calculator uses deterministic mathematical models derived from official sources (IRS, CRA, HMRC, ATO, BLS). Rates are verified annually and updated for the current fiscal year.
Privacy: All computations run locally in your browser. No financial data is ever transmitted to our servers.
Frequently Asked Questions
How long will $500,000 last in retirement in Canada?
With $500,000 in savings, $3,000/month in spending, 6% return, and 2.5% inflation (no CPP/OAS), your savings last approximately 25–26 years. Add combined CPP and OAS of $1,500/month and the same portfolio could last 35+ years or become indefinitely sustainable. Try the calculator above with your own numbers for a personalized result.
What is a safe withdrawal rate for Canadians?
The 4% rule suggests $1,667/month per $500,000 saved. Most Canadians also receive CPP and OAS, which reduces the required portfolio withdrawal. If your government benefits cover 50% or more of your monthly spending, your effective withdrawal rate on savings is much lower — making your portfolio far more resilient.
How much do Canadians need to retire comfortably?
A common guideline is 70–80% of pre-retirement income. For someone earning $80,000/year, that is $56,000–$64,000/year in retirement. If CPP and OAS provide $25,000/year, your portfolio needs to generate $31,000–$39,000/year. At a 4% withdrawal rate, that requires approximately $775,000–$975,000 in savings, though your actual number depends on lifestyle and location.
How does inflation affect retirement in Canada?
At 2.5% annual inflation, your $3,000/month spending today becomes ~$4,320/month in 15 years and ~$5,430/month in 25 years. This calculator applies inflation monthly, so you can see the real long-term impact. Both CPP and OAS are partially indexed to inflation, which provides some protection for Canadians.
Can CPP and OAS alone cover retirement expenses?
For most Canadians, maximum CPP and OAS combined (~$2,077/month) covers a significant but not total share of retirement spending. Those with modest lifestyles in lower-cost areas may find it sufficient. For most, savings are still needed to bridge the gap. Deferring OAS to age 70 increases it by 36%, and deferring CPP by 1 year beyond 65 adds 8.4% permanently.
What Is This Calculator?
A retirement savings calculator runs a month-by-month simulation of your portfolio, modeling how your balance changes over time based on investment returns, inflation-adjusted spending, and fixed income sources like CPP and OAS. Unlike a simple "years = savings / annual withdrawal" estimate, this tool adjusts your spending upward each month for inflation — so a $3,000/month lifestyle today costs ~$4,300/month in 15 years at 2.5% inflation. The formula each month is: Balance = (Balance × monthly return) − (inflation-adjusted spending − fixed income).
When Should You Use This Tool?
- You are 5–15 years from retirement and want to know if you are on track
- You are already retired and want to stress-test your current withdrawal rate
- You are comparing different spending levels to see how each affects your retirement longevity
- You want to understand the combined impact of CPP, OAS, or a workplace pension on your savings
- You are considering retiring early and need to model 30–40 years of portfolio drawdown