How much will I get when I retire at 65 in Canada?

Determining how much you will receive upon retirement at age 65 in Canada depends on several factors, including your contributions to public and private retirement savings programs, your personal savings, and your financial plans. Here are the primary sources of retirement income in Canada:

1. Public Pensions

Canada Pension Plan (CPP) or Quebec Pension Plan (QPP)

• Eligibility: Must have made contributions during your working years.
• Amount: The maximum monthly amount for new beneficiaries starting at age 65 is around CAD 1,203.75 (as of 2024). The actual amount you receive depends on how much and how long you contributed to the CPP or QPP.

Old Age Security (OAS)

• Eligibility: Must be 65 years old and have lived in Canada for at least 10 years after turning 18.
• Amount: The maximum monthly amount is approximately CAD 615.37 (as of 2024). The amount you receive may be reduced if your annual income exceeds a certain threshold.

2. Private Pensions and Savings

Registered Retirement Savings Plan (RRSP)

• Eligibility: Contributions are made during your working years, and withdrawals can be made at retirement.
• Amount: Depends on your contributions, investment returns, and the length of time your money has grown.

Employer Pension Plans

• Eligibility: Varies by employer.
• Amount: Depends on the specific terms of the pension plan offered by your employer.

Tax-Free Savings Account (TFSA)

• Eligibility: Contributions can be made annually up to a certain limit, and withdrawals are tax-free.
• Amount: Depends on your contributions and investment returns.

Estimating Your Retirement Income

To estimate your retirement income, you will need to consider the following steps:

1. Calculate CPP/QPP Benefits:
   • Review your annual CPP statement or use the CPP Retirement Pension Calculator to estimate your monthly benefits.
2. Calculate OAS Benefits:
   • Determine your eligibility and estimate your benefits using the OAS Pension Calculator.
3. Evaluate Private Pensions and Savings:
   • Check your RRSP, TFSA, and any employer pension plan statements for projected values at retirement.
   • Consider using retirement planning tools or calculators provided by financial institutions to project your savings growth.
4. Add Additional Income Sources:
   • Include any other savings, investments, or sources of income you may have.
5. Consider Your Expenses:
   • Estimate your retirement expenses to determine if your projected income will meet your needs.

Example Calculation

Here’s a simplified example:

• CPP: CAD 900/month
• OAS: CAD 615/month
• RRSP: CAD 200,000 (estimated withdrawal CAD 800/month)
• Employer Pension: CAD 500/month

Total monthly income: CAD 2,815

For a more accurate and personalized estimate, consider consulting with a financial advisor who can take into account your unique situation and provide detailed projections.