Wealthsimple Retirement Calculator

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u/retire-free · Joined Oct 2024

Find out when you can retire, how much you need to save, using this interactive visualization of the 7-number Wealthsimple model.

Last update Oct 2024
  • Scenario 1: Lifetime Savings & Spending

When this curve hits zero, you have no more money left to spend. Hopefully that's comfortably past your life expectancy! (95 years old?) If not, you need to save more, expect to spend less, or delay your retirement 😭

Age

Try your numbers:

Enter your current age.

A =

This is how much you're currently making, before tax. (If you have a full-time job, we're typically talking about the 5~6 digit number on your offer letter.)

B =

How much savings do you have now, across all your accounts? (RRSP, TFSA and non-registered accounts)

C =

Estimate how much of savings, over your working life, will go to RRSP and TFSA. (These accounts are subject to some limits you can contribute to. RRSP is at most 18% of your income; TFSA is related to how long you've stayed in Canada.)

D =

This is when you're planning to retire. (the earlier the merrier, of course)

E =

This is your expected spending level after retirement. For example, if you're currently making $50k a year (before tax), then $35k (before tax) means you're planning for 70% of your pre-retirement income.

F =

Save a portion of your monthly pay check into retirement investment. See how much you're comfortable with. The calculation assumes your pay check and monthly savings will both increase by inflation rate every year.

G =
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Add Input
  • Amount
    Any single amount ($).
  • Cash Flow
    Rent, insurance premium, salary, ...
  • Current Asset
    Real estate, commodity, bonds, ...
  • Installment Loan
    Mortgage, car loan, ...
  • Percentage
    Any percentage value (%).
  • Years / Months
    Any time horizon.
  • Age (already added)
    Show "Age" instead of "# Years from Now."
  • Retirement Age (already added))
    Enable "Investment Return After Retirement."

Time Value Assumptions

Heads Up!

If you're using Cost Basis (cb) for calculating capital gains:

Please be aware that very few countries currently use inflation-indexed cost basis. Double-check your local tax rules before publishing.

Scroll up to view updated chart.

Not exactly what you want?

How is Cash Value calculated?

Average CPP and maximum OAS are included. Use Ontario tax rates as average tax rates across Canada. Savings and spending are split by registered & non-registered accounts; for simplicity, assume a 50-50 split of RRSP/TFSA.

Decisions / Expectations

(Expressions are evaluated at Year 0 only.)

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M̃ =
Now
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Now
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Now
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Calculations

(Expressions are evaluated at every year.)

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Add Decision or Expectation
  • Buy Asset
    Buy an asset growing at its own rate.
  • Take Installment Loan
    Take a mortgage, loan, etc.
  • Invest
    Receive/Spend a lump sum.
  • Expect to Invest
    Expect to receive/spend a lump sum.
  • Expect Monthly Cash Flow
    Expect to receive/spend cash monthly.
  • Expect Yearly Cash Flow
    Expect to receive/spend cash yearly.
  • Define Variable (Numerical)
    Calculate an intermediate value.
Add Intermediate Calculation
  • Define Variable (Numerical)
    Calculate an intermediate value.
  • Define Variable (Cash Flow)
    Calculate a combined cash flow.