Retirement Projection Calculator
Project your retirement savings through accumulation and drawdown. Factor in your RRSP or TFSA balance, monthly contributions, and expected retirement expenses.
How the retirement projection works
The calculator runs two phases. In the accumulation phase, your current savings grow at the stated annual return with your monthly contributions added each month - using the compound interest formula. When the retirement phase begins, the drawdown phase starts: the portfolio earns the same return but annual expenses are deducted monthly. The calculation tracks month by month until the portfolio either reaches the end of your retirement horizon or depletes to zero, whichever comes first.
What this doesn't include
This is a deterministic projection using a fixed annual return. It does not model sequence-of-returns risk - the risk that poor returns in the early years of retirement permanently damage the portfolio. State pension, Social Security, or annuity income is also not included. Subtract any guaranteed annual income from your planned annual expenses to find the portfolio's actual burden. Tax on withdrawals and investment management fees are also excluded.
Why your pension provider's figure may differ
Pension providers and financial advisers typically use a range of projected returns (low, medium, and high) under regulatory guidance, not a single rate. These projections are also adjusted for charges, which can reduce the effective annual return by 0.5–2%. If the calculator's result looks higher than your provider's projection, the most likely explanation is fees or a lower assumed return. Check the assumed growth rate in your provider's projection and enter the same rate here to compare.
Frequently asked questions
What withdrawal rate is sustainable in retirement?
The 4% rule - withdraw 4% of your initial portfolio in year one, then adjust for inflation annually - has historically sustained a 30-year US retirement in most market scenarios. 3.5% is more conservative for longer retirements or non-US portfolios. Use the drawdown phase of this calculator to model your specific horizon.
How does inflation affect a retirement portfolio?
At 3% annual inflation, purchasing power halves in roughly 24 years. If you withdraw a fixed nominal amount, inflation silently erodes what it can buy. Toggle the real balance view to see your portfolio in today's purchasing power - a more honest picture of retirement security.
What is sequence-of-returns risk?
If markets fall sharply in your early retirement years, you sell more units to fund withdrawals - permanently reducing the portfolio's ability to recover in better years. The same average return over 30 years produces very different outcomes depending on whether the bad years come first or last. This is why holding some cash or bonds in early retirement is often recommended.
Should I include pension or Social Security income in this calculator?
Yes - subtract any guaranteed annual income (pension, Social Security, annuity) from your planned annual expenses to find how much your investment portfolio needs to supply. A £15,000/year pension on £30,000 annual expenses means your portfolio only needs to fund £15,000 per year.
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The repayment engines behind this site are tested against worked examples published by FRED, the Bank of Canada, the Bank of England and the Reserve Bank of Australia. Found an error? Contact us