You can also use the Retirement Calculator for a more precise calculation based on your financial situation.
Directions to use the Retirement Calculator:
Choosing a province: select Ontario if you live outside of Quebec; this will ensure that the government benefits are calculated correctly. The remainder of the calculations is not affected by the choice of province.
Expected Return: Choose the option that is most in line with your actual investment portfolio or your risk tolerance.
Desired Retirement Income: Enter the percentage of your actual income that you will require at retirement.
If you are not sure, you can follow these guidelines:
Couple: 50 % to 60 % of your actual working income
Single: 70% of your actual working income
These guidelines assume that you will have eliminated your heftier living expenses at retirement (mortgage, dependents, etc.). If not, enter a higher percentage of your income.
Additional Retirement Income: Do not include Canada Pension Plan or Old Age Security payments. These will be added later in the process.