A forecast turns separate numbers into one picture.
Retirement timing, monthly spending, public benefits, workplace pensions, savings and contributions can be difficult to judge one at a time. A forecast places them on one timeline so you can see how they may interact.
- TimingWhen retirement may begin.
- ExpensesWhat everyday life and important experiences may cost.
- IncomeBenefits, pensions and other income that may arrive.
- SavingsWhat is available today and what may be added over time.
What the estimate does
Start with a rough estimate, then test potential actions.
The first picture is not a verdict. It helps you see what is driving the result and test potential actions one at a time.
- Income needs
- Savings path
- Which changes would you like to test?
What it can show—and what it cannot.
- Whether entered income may cover entered monthly spending.
- How saving longer or spending differently changes an illustration.
- Which assumptions have the greatest effect.
- Where more complete information could improve the next review.
- Future investment returns and inflation will differ.
- Benefits, taxes and rules can change.
- Unexpected expenses and life changes will occur.
- An illustration cannot know every personal consideration.
Start rough, then improve the plan.
A useful first forecast does not need to be perfect. It shows where your current momentum may be taking you, what is driving the result, and potential actions you can test to improve the expected outcome. Replace rough numbers as you learn more, and revisit the plan when life changes.
Related questions
A few useful follow-ups.
Do I need exact numbers to begin?
No. Clearly labelled rough estimates can create a useful first picture and show which figures deserve checking.
What information is most useful?
Start with ages, monthly spending, CPP and OAS estimates, workplace pensions, current savings and monthly contributions.
Is the result a prediction?
No. Returns, inflation, spending and life events will differ. Use the result to compare potential actions, see how each changes the illustration, and decide which actions are worth adding to your retirement plan.
Can I change the estimates later?
Yes. The forecast is designed to be revised as you learn more or your circumstances change.
Sources and useful places to continue
- Government of Canada: Canadian Retirement Income Calculator (opens in a new tab) — the official calculator and its list of information to gather.
- Financial Consumer Agency of Canada: planning and saving for retirement (opens in a new tab).
- Government of Canada: sources of income during retirement (opens in a new tab).
External resources are provided for convenience. Retired Kevin is not affiliated with or endorsed by these organizations.