How do I know if I'm ready to retire?

You're ready when three things are true at once: your savings and income last as long as you need them to, your plan still holds up if markets drop sharply soon after you retire, and you know how much you can safely spend each month. A portfolio size or a target age alone doesn't answer the question - your spending, taxes, government benefits and timeline all change the result.

How much money do I need to retire in Canada?

There is no single number. It depends mostly on what you spend, how long your money has to last, and how much CPP, OAS and pension income you'll receive. Someone spending $3,500 a month with full CPP and OAS needs far less than someone spending $9,000 a month who retires at 55. Running your own numbers year by year, including taxes and inflation, is the only reliable way to find your figure.

How does a market crash affect my retirement?

Timing matters more than size. A big drop in the first few years of retirement does far more damage than the same drop later, because you're selling investments at low prices to cover living costs and those dollars never recover. This is called sequence-of-returns risk. Holding a cash or GIC buffer of one to a few years of spending, or working slightly longer, are the most common ways to reduce it.

Can I use this retirement calculator if I don't live in Canada?

Yes. A checkbox switches the RRSP, TFSA, CPP, OAS and GIS fields to generic tax-deferred and tax-free accounts, an earnings-based public pension, a universal pension and a means-tested supplement that you fill in for your own country, with taxes applied at an average rate you choose.

14 Oct 2026 20 min read Calculators

Am I Ready to Retire? The Calculator

Recently I posted a detailed post along with a calculator that determines if you are ready to retire based on various inputs. I thought the calculator deserved its own stand-alone post, so here it is.

Optimized For Freedom · Calculators

The Retirement Readiness Check

Put in what you have, what you spend, and how long it needs to last. This tool runs your plan year by year - taxes, inflation, government benefits and a bad-market stress test included - and tells you straight: ready, almost, or not yet. Everything is shown in today's dollars.

I don't live in Canada - swap RRSP, TFSA, CPP, OAS and GIS for generic accounts and public pensions.

Your timeline

Current age

Age you want to retireSame as current age = retire now

Years your money must lastFrom retirement - to age 95

What you've saved

RRSP / RRIF / LIRA balanceFully taxable when withdrawn - see taxes below

TFSA balanceWithdrawals are tax-free

Non-registered balanceRegular brokerage account

Unrealized gain in that account (%)Share of the balance that is profit

Cash savingsSavings account, GICs, emergency fund

Yearly savings until you retireSpread across your investment accounts

What you'll spend

Monthly expenses in retirementAfter tax, today's dollars, excluding the debt below

Mortgage / debt payments (monthly)Fixed payments - inflation shrinks them

Debt paid off at age

Spending drop after 75 (%)Many retirees spend less later. 0 = conservative

Other retirement income

Workplace pension (monthly)Defined benefit, today's dollars

Pension starts at age

Pension indexed to inflation?

Part-time income (monthly)Consulting, side business, bridge job

Part-time work ends at age

Government benefits

Your CPP at 65 (monthly)Check My Service Canada Account. 2026 max: $1,507.65

Start CPP at age60-70. -7.2%/yr early, +8.4%/yr late

Years in Canada after 18 (by 65)40 = full OAS. Under 10 = none

Start OAS at age65-70. +7.2% per year you wait

Earnings-based public pension (monthly)e.g. Social Security - your estimate at the start age

Starts at age

Universal / residency pension (monthly)Flat pension paid to residents, if your country has one

Starts at age

Low-income supplement, max (monthly)Means-tested top-up. 0 if none

Yearly income where it stopsShrinks gradually to zero at this income

Taxes in retirement

Province / territorySets your provincial brackets

How to estimate income tax Auto taxes RRSP/RRIF, CPP, OAS, pension and gains year by year

Average tax rate in retirement (%) Blended rate on RRSP/RRIF withdrawals, CPP, OAS, pension and gains

Market assumptions

Expected investment return (%)Before inflation, after fees

Target inflation (%)Bank of Canada target is 2%

Return on cash savings (%)

Market drop to test (%)Hits all invested balances. Stocks fell 30-40% in 2008. 0 = skip

When the drop hits Early drops do the most damage

Runs your plan, a market-drop version, and the fixes if there's a gap.

Money lasts

Safe monthly spending

Spending coveredsafe spending ÷ your plan

Left at the endtoday's dollars

Government benefit check

Your taxes in retirement

Your moves

Your money over time (today's dollars)

Your planMarket drop

Year-by-year breakdown

What this tool assumes (read this part - it matters):

Build the freedom before you need it.