Retirement Planner

Instructions: The Retirement Planner financial worksheet will lead you a step at a time through the questions that should be considered to ensure you have enough savings to sustain your ideal retirement. Simply fill in your appropriate answer in each of the boxes on the right side and the worksheet will perform the necessary calculations.

Note: All instances and light blue-shaded fields where the instructions indicate to multiply, divide or subtract figures will be completed for you automatically. You do not need to enter values in these fields.
STEP 1: Determining Your Retirement Goals
1.Think about the lifestyle you want in retirement. Do you have any expenses that may be reduced, for example, a mortgage, dependents or work-related expenses? Will you have any new expenses, for example, medical coverage, travel plans or hobbies? Based on these expenses, estimate your annual retirement income needs into line A.

TIP: A general rule is that you will need 60%-80% of your current annual income to maintain your standard of living in retirement.
 

Example
entering 45000
results in $33,750
(75% x $45,000)
A
 
2. You will need to adjust your annual income for future inflation. From the table below, select the number of years until you retire. Click on the table value or enter your own inflation factor on line B.
 

Example 2.09
B
 
Years to
Retirement		 5 10 15 20 25 30 35
Inflation Factor* 1.16 1.34 1.56 1.81 2.09 2.43 2.81
* assumes 3% inflation
3. Multiply line A by line B. This is your annual retirement income need, adjusted for inflation.
 

Example $70,538
(33,750 x 2.09)
C
 
STEP 2: Determining Your Retirement Income Sources
1. Estimate the percentage of annual income you expect to receive from sources other than your personal savings. Examples include income from a company pension plan, government benefits (such as CCP/QPP and OAS or rental income)
 

Example entering
30 results in $21,161
(30% x $70,538)
D
 
TIP: As an estimate, if you have a company pension plan, multiply line C by 60%. If you do not have a company pension plan, multiply line C by 30%. Use an even lower percentage if you are uncertain about the future availability of government benefits.
2. Subtract line D from line C. This is the amount of annual retirement income you will need to fund from your personal savings, such as your RSP.
 

Example $49,377
($70,538 - $21,161)
E
 
STEP 3: Determining Your Personal Savings Goals
1. From the table below, select the number of years you expect your retirement income to last and click on the table value, or enter your own factor on line F.
 

Example 15.44
F
 
Years Income
Needed		 15 20 25 30 35
Factor* 12.36 15.44 18.10 20.40 22.40
* assumes a 6% pre-tax annual rate of return, 3% annual inflation that funds will be depleted by the end of the period selected.
2. Multiply line E by line F. This is the amount you need to save prior to retirement in order to produce your annual retirement income.
 

Example $762,381
(49,377 x 15.44)
G
 
3. Enter the total amount you have already saved in RRSPs
 

Example $46,000
H
 
4. From the table below, select the number of years until you retire and match it with the return you expect your savings to earn. Click on the table value or enter your own factor on line I.
 

Example 6.85
I
 
Years to
Retirement		 5 10 15 20 25 30 35
Annual Rate of Return
4%
6% 1.34 1.29 2.40 3.21 4.29 5.74 7.69
8%
 1.47 2.16 3.17 4.66 6.85 10.06 14.79
10% 1.61 2.59 4.18 6.73 10.83 17.45 28.10
5. Multiply line H by line I. This is the amount your current RRSPs will be worth at retirement.
 

Example 315,100
(46,000 x 6.85)
J
 
6. Subtract line J from line G. This is the additional amount you must save by the time you retire in order to meet your retirement income goal.
 

Example $447,281
($762,381 - $315,100)
K
 
TIP: If this number is less than zero, you're ahead of your retirement savings goal! Consider other goals you may have and ask an Fiscal Agents Investment specialist about putting a strategy in place to achieve them.
STEP 4: Determining Your Monthly Savings Goals
1. From the table below, select the number of years until you retire and match it with the return you expect your savings to earn in the meantime. Click on the table value or enter your own on line L.
 

Example 908.99
L
 
Years to
Retirement		 5 10 15 20 25 30 35
Annual Rate of Return
4% 66.18 146.70 244.66 363.84 508.85 685.27 899.92
6% 69.49 162.47 286.91 453.44 676.29 974.51 1373.60
8% 72.94 180.12 337.61 569.00 908.99 1408.55 2142.75
10% 76.56 199.86 398.44 718.26 1233.31 2062.84 3398.79
2. Divide line K by line L. This is how much you need to save each month to achieve your retirement savings goal.
 

Example $492
($447,281 ÷ 908.99)
M
 
To view a printer-friendly summary of your answers and results, click on the Results button on the right.