Retirement Planning Calculator

Registered Investments: This amount reflects your total amount currently invested in your RRSP or RIF and other tax deferred savings vehicles.

Non - Registered Investments: Please enter all non-registered assets that are held for the specific purpose of financial gain or to pay for furture expenses. Examples include: cash or margin accounts, rental property, private equity, etc.

Current Age: Your current age is used to determine how many years the plan will run for. If you are 70 it will run for 30 years, if you are 60 it will run for 40 years, etc.

Retirement Age: Please enter the age that you plan on retiring at. If you are already retired, enter any age equal to, or below your current age.

Current Spending: Minimum spending should include basic necessities and the lowest amount of leisure spending that would still be acceptable. Maximum spending should be based on a realistic amount that you would like to spend annually.

Change in Spending: If you believe that spending may increase or decrease at an age in the future, fill in the 1st change in spending follow by the 2nd or 3rd if applicable. For Example, if you plan on spending less after the age of 80 due to less travel, fill out the minimum and maximum boxes for the 1st change in spending. Change in spending can also be used to account for intermediate-term spending commitments, such as funding your kids education.

Pre and Post-retirement tax rates apply to all income except from non-registered investments. The tax rate applied to non-registered investments is based on our prior investment experience and represents 1% of the annual return on investment.

Salary: Enter your average annual expected salary before retirement. If you have already retired do not enter any information into this box. If you are earning a part time salary during retirement, first determine your annual spending net of after-tax income from part time employment. Once this is determined change the amount of minimum and maximum spending for the length of time that you expect to be working.

Pension: Enter your annual pre-tax pension income.

CPP: The amount of CPP that you will receive is dependent on your age and contributions during your working years. Your amount of CPP can be viewed on your latest Statement of Contributions, if you do not know this number you can request it online from the Government of Canada ( http://www.servicecanada.gc.ca/en/online/soc/proceed.shtml ). The maximum annual amount for 2008 is $10,608 if the age that you begin to receive CPP is 65. Every year that you choose to receive CPP before the age of 65 will reduce your annual amount by 6%. Therefore, if you chose to receive CPP at age 60 your annual amount would be reduced by 30% to $7425.6.

OAS: Canadians are entitled to receive OAS beginning at age 65. The maximum amount that individuals are entitled to receive during 2008 is 6082.23. For 2008 to receive the maximum OAS your individual income must be below $64,718, to determine how much may be clawed back see http://www1.servicecanada.gc.ca/en/isp/pub/oas/oas.shtml#1 . The amount of years that you lived and worked in Canada also determines the amount of CPP that you receive. If you have not lived in Canada since you were born, please go to http://www1.servicecanada.gc.ca/en/isp/pub/oas/oas.shtml#1 to determine the amount of OAS that you will be entitled to.

Cash Flows: For non-recurring events, such as the purchase or sale of a vacation property, enter the cash required from the portfolio or the cash that will be added to the portfolio along with the year that you expect the cash flow to occur in. A sale of a business or an outright purchase of car, are among many non-recurring events that this function of the spreadsheet can accommodate.

Expected Inflation Rate: The default value for inflation is set at 3%. All income and spending are increases at the rate of inflation.

Combined Current RRSP Contribution Room: If you and your spouse both have an income during the prior year then add together your and your spouse's contribution room. Otherwise just enter your own contribution room.