See if your savings and government benefits will cover your retirement income goal.
Retirement readiness score
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Projected savings at retirement
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Estimated monthly income
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Monthly income gap
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Your breakdown
Updates live as you type
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Why most Canadians underestimate their retirement savings need
The standard benchmark is to replace 70 percent of your pre-retirement income in retirement, because expenses typically fall as the mortgage is paid off, children are independent, and commuting costs disappear. But in practice many Canadians, especially those retiring early, find they spend as much or more in the early active years of retirement as they did while working. Healthcare costs also rise significantly after 75. CPP and OAS provide a meaningful base but they cover only a fraction of most middle-income Canadians budget. For someone earning $100,000 before retirement, CPP plus OAS might replace $18,000 to $24,000 annually, leaving a gap of $46,000 to $52,000 that must come from savings.
How this calculator estimates your projected income
The calculator grows your current savings at your expected annual return for the years until retirement, then adds contributions made along the way. At retirement it applies the 4 percent rule to estimate sustainable annual withdrawals from that lump sum, then adds the monthly CPP and OAS amounts you enter to arrive at total monthly income. That total is compared against your desired monthly income to produce the gap and score. The score is the ratio of projected income to desired income, capped at 100, giving you a percentage measure of readiness. A score of 100 means your projected sources exactly cover your goal; below 100 means a shortfall at the entered assumptions.
Improving your score: the levers that matter most
The most powerful lever is time: starting to save earlier gives compound growth more runway and dramatically improves the score. The second lever is contribution rate: even an extra $200 per month compounded over 25 years at 6 percent adds over $100,000 to your retirement portfolio. Delaying CPP from 65 to 70 increases your monthly benefit by 42 percent, which is the equivalent of earning a guaranteed 8.4 percent return on that deferral, far better than most investments. Reducing your desired retirement income target is also effective: modest lifestyle flexibility in planning can eliminate a large savings gap on paper, and actual retirement spending often naturally adjusts.
Frequently asked questions
What is a good retirement readiness score?
A score of 80 or above generally indicates you are on track to replace 70 percent or more of your pre-retirement income, which most financial planners consider adequate for a comfortable retirement. A score between 60 and 79 suggests you are making progress but a savings gap exists. Below 60 indicates a significant shortfall and warrants reviewing your savings rate, retirement age, or income expectations. These thresholds are general guidelines, not guarantees.
How much CPP can I expect in Canada?
The maximum CPP retirement pension in 2025 is $1,433 per month, but most Canadians receive significantly less. The average new CPP recipient receives approximately $810 per month. Your actual CPP depends on how many years you contributed, your earnings during those years, and the age at which you start. Delaying CPP from age 65 to 70 increases your payment by 42 percent. You can check your projected CPP amount through My Service Canada Account online.
What is the OAS pension amount for 2025?
The maximum OAS pension for Canadians aged 65 to 74 is approximately $727 per month in 2025. Canadians aged 75 and older receive a 10 percent top-up, bringing the maximum to about $800 per month. OAS is clawed back at a rate of 15 cents per dollar of net income above $90,997 in 2025 and is fully eliminated around $148,000. You must have lived in Canada for at least 40 years after age 18 to receive the full OAS; partial OAS requires at least 10 years of residency.
How does the 4 percent rule apply to Canadian retirees?
The 4 percent rule suggests that withdrawing 4 percent of your portfolio in the first year of retirement and adjusting for inflation thereafter gives a high probability of the portfolio lasting 30 years. For Canadian retirees with RRIF minimum withdrawal requirements, CPP, and OAS, the calculation is more complex. The RRIF minimum starts at 4 percent at age 65 and rises each year, so CPP and OAS as a base layer of income means you may need to draw less from your portfolio, making your savings last longer.