How to Use an Accurate Canadian Retirement Calculator
Personalized Retirement Calculator you’re like most investors or would-be retirees, you probably want to know how much you can expect to receive in your golden years. These calculators are a good place to start, but it’s important that you remember that there are many factors that can change your retirement plans – things like inflation rates and market returns.
Most retirement calculators ask you to enter a retirement income goal. Some suggest you should aim for 70 per cent of your pre-retirement income. Other experts say you may be able to get by with 50 per cent.
It’s also important to consider whether you’ll have other sources of income in retirement, such as a company pension, or investments held outside your registered accounts. Most of these calculators also require you to select the expected long-term inflation rate. This can significantly impact the results.
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Many calculators will also ask you to enter the total value of your RRSP, TFSA and non-registered investments. Some of these calculators also include a section for you to estimate the value of your home, which is often considered an asset when planning your retirement.
It’s worth pointing out that these calculators are designed for illustrative purposes only. They are not intended to serve as financial, investment or tax advice and should be used only with the help of a professional advisor. The estimates you see on these calculators are based on a series of input assumptions that you provide. The actual outcomes will depend on a variety of factors, including the performance of your investments and any fees or expenses that you might incur.
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