Retirement PaychequeTM
Your retirement lifestyle can be exactly as you planned, once your income needs are met. Use this calculator to estimate how much monthly income your retirement savings could provide you in retirement. Your annual savings, expected rate of return and current age all have an impact on your retirement paycheque. View the full report to see a year-by-year break down of your retirement savings.
Living well into your retirement takes careful planning. See the Retirement PaychequeTM section to find out how we can help you maintain peace of mind.
Contact your nearest Investors Group Consultant to find out how The PlanTM can help you fulfill your goals for life.
Definitions
- Starting balance
- Initial balance that you have today in your retirement accounts.
- Annual contributions
- The amount you will contribute to your retirement savings each year. This should reflect the total you save toward your retirement. This calculator assumes that you make one annual contribution at the start of each year, and any withdrawals happen once per month at the beginning of each month.
- Current age
- Your current age.
- Age of retirement
- Age you wish to retire. This calculator assumes that the year you retire, you do not make any contributions to your retirement savings. So if you retire at age 65, your last contribution happened when you were actually age 64.
- Rate of return before retirement
- This is the annual rate of return you expect from your investments before taxes. The actual rate of return is largely dependant on the type of investments you select. For example, the average annual rate of return for the TSX has been 11% for the last 20 years. Savings accounts at a bank or credit union can pay as little as 2% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.
- Rate of return during retirement
- This is the annual rate of return you expect from your investments during retirement. It is often lower than the return earned before retirement due to more conservative investment choices to help insure a steady flow of income. The actual rate of return is largely dependant on the type of investments you select. For example, for the last twenty years the average annual rate of return for the TSX is about 11%. Savings accounts at a bank or credit union can pay as little as 2% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.
- Current tax rate
- Your current marginal tax rate you expect to pay on your taxable investments.
- Retirement tax rate
- The marginal tax rate you expect to pay on your investments at retirement.
- To increase deposits with inflation checkbox
- Check this box if wish to have your annual contribution increased each year to keep up with inflation.
- If savings is tax deferred checkbox
- Check this box if your retirement savings is being deposited into a tax deferred account.
*Assumption: Inflation rate of 3.1%. Retirement Income is assumed to be level throughout the entire retirement period and payments include both capital and return on investment.
Information and interactive calculators are made available to you as illustrative tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
