Canada retirement income: a worked example

Invented figures, not official pension rates. Ages are scenario inputs, not eligibility ages. CPP, QPP and OAS are not automatically recalculated. Obtain a new official estimate when changing a benefit start date.

What does this example show?

With spending of CA$3,500 a month, an entered pension of CA$2,300 from age 65, and no investment growth or inflation, the plan needs CA$444,000 at age 63 to last until age 90. Of that, CA$84,000 covers the period before the pension starts.

Load this example

Prepare the Canada inputs

Combine personal CPP or QPP, OAS and employer pension estimates with accessible savings. See which years need the largest withdrawals in Canadian dollars. Canada's official retirement calculator considers CPP or QPP, OAS, employer pensions and retirement savings. Use your contribution statement and residence history when getting those estimates. Enter the net amounts and start dates appropriate to your own plan rather than a headline maximum.

Read the country guide and input checklist

Every assumption in the baseline

Current age / stop working: 63 / 63
Plan until age: 90 (exclusive)
Accessible savings at retirement: CA$444,000
Further saving: CA$0 per month
Spending after tax: CA$3,500 per month
Entered pension after tax: CA$2,300 per month, age 65 onward
Other income streams: CA$0
Net nominal return / inflation: 0% / 0% per year

All figures use today's purchasing power. The pension is an illustrative recurring payment. The model does not assess eligibility, taxes, access restrictions or a benefit increase for claiming later. The example uses zero return to make the arithmetic easy to reproduce; zero is not a return forecast.

Follow the two periods

Age 63 to 65: savings cover all spending.
2 years × 12 months × CA$3,500 = CA$84,000.
Age 65 to 90: the pension covers part of spending.
Monthly gap = CA$3,500 − CA$2,300 = CA$1,200. Over 25 years, savings supply CA$360,000.

Total capital needed: CA$84,000 + CA$360,000 = CA$444,000. At a nonzero return, the calculator discounts each monthly gap. It never borrows against future pension income.

Change one assumption

Same starting savings and spending, different timing · CAD
Scenario	Capital needed	Additional capital needed	Try it
Baseline bridge	CA$444,000	CA$0	Load scenario
Pension starts one year later	CA$471,600	CA$27,600	Load scenario
Plan for five more years	CA$516,000	CA$72,000	Load scenario

Delaying the same pension by one year increases the required savings by CA$27,600. Planning five years longer adds CA$72,000. Actual later-claiming benefits may differ: get a new official estimate before using a real alternative date.

What this leaves out

RRSP, RRIF and TFSA balances do not have identical withdrawal tax consequences. This model has no account-specific tax engine or mandatory withdrawal schedule. Prepare a consistent after-tax plan before combining resources; do not describe a pre-tax balance as fully spendable cash.

The result is a deterministic illustration with no market volatility, changing taxes, care-cost shock or inheritance target. Payments remain constant in real terms, which may overstate a pension that does not keep pace with prices. Three income streams are available; combine payments only when their dates and money basis match.

The first twelve-month budget in the calculator solves for a fundable spending level. It is a separate result from your entered target. In a stressed scenario it can be lower than the target; the capital-gap table above keeps the original spending target unchanged.

Official sources and review scope

Government of Canada · Retirement Income Calculator ↗

Source descriptions checked 4 October 2026. This is an illustrative calculation, not a government benefit forecast. Read our editorial policy and review status.

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