Am I On Track for Retirement? Your 5-Step Checkup for Canadians

Wondering if your retirement savings are on the right track? You’re not alone. Many Canadians worry about their financial future, but checking your progress doesn’t have to be daunting. Here’s an easy, step-by-step checkup to see where you stand.

1. Know Your Target Retirement Income

It all starts with the basics: How much will you need each year in retirement? The usual advice is to save at least 10% of your income (including any employer contributions) if you start in your 20s or early 30s. If you’re beginning later, you may need to save a larger percentage to catch up.

Keep in mind, your lifestyle and goals play a big role. Planning to travel a lot in retirement? Expect to need more, especially in the first decade. Have a family history of longevity? Prepare for 30–35 years of retirement.

Tip: Online retirement calculators can help estimate your total retirement needs.

2. Tally Up What You’ve Saved So Far

Check your current savings. Add up what you have in your RRSP, TFSA, employer pension, and any non-registered investments. Enter these numbers into a retirement calculator to get a clearer picture.

3. Estimate Your Government Benefits(CPP and OAS)
   A big part of your retirement income may come from the Canada Pension Plan (CPP) and Old Age Security (OAS). To get your personalized CPP estimate, log in to your My Service Canada Account.
   1. Go to the Canada Pension Plan section.
   2. Click “View my benefit estimates.” You’ll see monthly benefit projections for starting at ages 60, 65, and 70. Keep in mind these estimates assume you’ll keep earning at your current level until age 65. OAS generally starts at 65.
4. Run a Simple Projection
   Combine your savings and anticipated income. Use these three key assumptions:
   1. Investment Growth rate: Estimate the annual earnings of your investments.
   2. Inflation: Plan for around 2% annually—costs will rise over time.
   3. Withdrawal rate: The 4% rule is a common, conservative guideline—withdraw 4% of your nest egg per year, adjusted for inflation.

Tip: Projections don’t have to be complicated! Start simple.

5. Identify Areas to Improve and Adjust
   After running your numbers, see if you’re on track. If not, here’s what you can do:
   1. Save more: Even small increases in RRSP or TFSA contributions can add up.
   2. Spend less: Figure out a more modest way of living in your retirement years.
   3. Change your retirement age: Working one more year, or deferring CPP/OAS, will make a difference.
   4. Review your investments: Ensure your risk level aligns with your goals, and rebalance after major market shifts.

Tiny tweaks today can mean a much more comfortable retirement tomorrow.

One of our Senior Wealth Advisors would be happy to personalize a retirement projection for you. Call us at 519-655-2700 and book your quick appointment.