This “Retirement calculator” is provided only for information and education purposes only. The calculator does not provide investment, tax or legal advice, and is not an offer or solicitation to buy. Graphs and charts are used for illustrative purposes only and do not reflect future values or returns on investment of any fund or portfolio. You should not rely on the results as an indication of your financial needs and you should seek your own financial, tax, investment, legal or accounting advice. The investment returns modelled by this tool are hypothetical, and actual returns may be higher or lower. While care is taken in the preparation of this calculator, no warranty is made as to the accuracy or applicability in any particular case. Fidelity Investments Canada ULC (“Fidelity”) and its affiliates and related entities are not liable for any errors or omissions in the information or for any loss or damage suffered.

This tool makes the following assumptions about your government benefits:

• The calculation assumes you will be eligible to collect the full CPP/QPP retirement pension benefits and have lived and worked in Canada for at least 40 years since age 18. It also assumes that you have applied for the benefits and are otherwise eligible to receive them.
• If you select a retirement age between age 60 and 64, you will receive a reduced government benefit.
• If you select a retirement age prior to the age of eligibility, you will receive an estimate the economic value of these government benefits.
• If you select a retirement age after 65, you will receive an increased government benefit.
• The calculation also assumes that full entitlement to CPP/QPP retirement pension benefits ($1,364.60/month, updated as at January 2024) in the year you turn 65. If you indicate that you retire at a different age, the CPP/QPP benefit is increased or decreased for starting the benefit before or after age 65.
• The CPP/QPP benefit is indexed annually; payments, once received, will grow by a constant rate of inflation of 2% annually.
• It is important to note that the CPP/QPP amounts are only estimates and may not equal your actual benefits.
• To find out your exact CPP/QPP benefit payment at the time you expect to retire, contact Service Canada at 1 800 277-9914 or visit http://www.servicecanada.gc.ca.
• The calculation also assumes that entitlement to full OAS pension benefits ($713.34/month, updated as at January 2024) in the year you turn 65. If you indicate that you retire at a different age, the OAS benefit or economic benefit of OAS is increased or decreased for starting the benefit before or after age 65. Canada’s OAS clawback is not included in our assumptions and will not affect the calculation of total income in retirement.
• The calculation also assumes that full OAS pension benefits ($713.34/month, updated as at January 2024) will commence in the year you turn 65 (even if you indicate that you retire at a different age). Canada’s OAS clawback is not included in our assumptions and will not affect the calculation of total income in retirement.
• The OAS benefit amount is assumed to be indexed annually: payments, once received, will grow by a constant rate of inflation of 2% annually.
• It is important to note that the OAS amounts are only estimates and may not equal your actual benefits.
• No tax consequences for government benefits amounts are taken into account.
• All calculations are before tax.

The tool also makes a number of other assumptions. All the assumptions used may mean that the results are not an accurate indication of your retirement benefits.

Investment assumptions

The calculator’s results regarding the hypothetical accumulation of assets are based on Fidelity’s assumptions on how markets will behave in future. The assumptions for market variability are based on historical market performance. This is also used to determine how closely linked the returns from the different asset classes will be. However, the market’s past performance does not predict how it will perform in the future. Fidelity determines forward-looking assumptions for the average return on each asset class. The calculator provides one set of results on the assumption that the markets perform in line with these average assumptions, and another set of results that reflect poor outcomes. It should be noted that the actual risk associated with a portfolio of investments may be higher than the volatility of the underlying asset classes would indicate, due to factors such as the type of investment, the complexity of the underlying assets or a lack of diversification in the portfolio.

Retirement Income

At retirement there are various ways of using your savings. You may choose to buy a guaranteed regular retirement income, called an annuity, or take a drawdown of your savings which leaves your money invested. This tool assumes that you will take a fixed drawdown of your savings with a balanced real return and will not take any additional (or reduced) drawdowns from the savings amounts calculated in the tool. However, the drawdown you may actually receive may be less (or more) than what has been assumed within the tool.

Other income in retirement

Retirement calculator allows you to enter any additional income you expect to receive in retirement; this could be from a defined benefit pension, rental income or any other source of income you might expect to have. Rather than enter a dollar value, you enter it as an approximate percentage of your income, to which we will apply earnings inflation as set out in the section below on your goal. This means that both your retirement income goal, and your other sources of income in retirement, are both working in the same way: as a percentage of your final income before retirement.

Your savings

The tool assumes that any savings you enter continue at the same level. This may not be accurate in all situations.

Inflation and salary growth

The calculations provided by this tool are adjusted to reflect the effects of inflation. This is known as “real terms.” We have made this adjustment so that you can see a retirement shortfall based upon the estimated costs of goods and services when you retire.

To calculate the pre-retirement income, we assume that your salary grows at a rate of 3% per annum. This is based on consumer price inflation (2%, the target inflation rate of the Bank of Canada) plus the rate by which salary growth exceeds price growth (1%, based on the historical difference between salary and price inflation, as taken from Statistics Canada data).
Source: Fidelity Investments Canada ULC.

Life expectancy

The calculator assumes that you will live until age 95. This is substantially longer than the current average life expectancy. We want to ensure that if you live longer than average you will not run out of assets in your retirement.