Retirement Projection CPP + OAS
Accumulation → drawdown with CPP/OAS safety floor, clawback detection, and sensitivity slider.
About you
Government benefits
Portfolio & Government Income — Age 35 to 95
Blue line = portfolio balance · Green band = annual government + pension income (safety floor) · Vertical lines at key ages
The math behind your result
Every number on this page is derived from the exact Canadian regulatory formula — not approximations or estimates. The calculation runs entirely in your browser using the inputs you provided. Expand the section below to verify the math step-by-step, or share the URL to reproduce these exact results.
▶ How is this calculated?
Accumulation phase (current age → retirement)
Monthly: balance = balance × (1 + monthlyRate) + contribution monthlyRate = (1 + annualRate)^(1/12) − 1 (geometric compounding)
Drawdown phase (retirement → 95)
Each year: govIncome = CPP + OAS (net of clawback) + pension gap = max(0, annualSpending − govIncome) Portfolio shrinks by gap over 12 months at postRetirementReturn
CPP early/late start adjustment
Before 65: adjusted = expected × (1 − 0.006 × months_before_65) [max −36% at 60] After 65: adjusted = expected × (1 + 0.007 × months_after_65) [max +42% at 70] Source: Service Canada 2025
OAS clawback (CRA 2025)
If income > $93,454: clawback = (income − 93,454) × 15% Net OAS = max(0, gross OAS − clawback) Threshold CPI-indexed annually. Source: CRA T1 line 23500
About the Retirement Projection Calculator
Why CPP and OAS matter more than most calculators show
Most online retirement calculators ignore or drastically simplify CPP and OAS — because they're built for American users whose Social Security system works quite differently. For Canadians, CPP and OAS together can provide $1,600–$2,200/month of inflation-indexed, guaranteed income for life. That's the "safety floor" shown in green on the chart above. Getting the start age right is a 20-year decision worth hundreds of thousands of dollars.
CPP start-age tradeoffs
Taking CPP at 60 instead of 65 reduces your benefit by 36% permanently. At 65 you receive the full base amount. Delaying to 70 increases it by 42%. If you're in good health, the math often favors delaying — but the right answer depends on your health, tax situation, and whether you need the cash earlier. This calculator lets you drag the slider and see the impact immediately.
The OAS clawback
If your net income in retirement exceeds $93,454 (2025), CRA will claw back 15¢ of OAS for every dollar above that threshold. OAS is fully eliminated at ~$151,668. The clawback is sometimes called the "social benefits repayment" (CRA line 23500). It surprises many Canadians who have large RRSP balances and are forced into high withdrawals at RRIF conversion age (71). This calculator flags when clawback is likely.
Limitations of this projection
This calculator uses a constant-rate growth model and does not account for: sequence-of-returns risk (bad returns early in retirement are much more damaging than the average suggests), inflation erosion of spending power, taxes on RRSP/RRIF withdrawals, provincial drug/benefit programs for seniors, or the impact of a DB pension's indexing provisions. A Monte Carlo simulation (Phase 2) would give you a probability distribution of outcomes rather than a single line.
Related calculators
- TFSA vs RRSP — which account to draw from first in retirement
- Canadian Income Tax Calculator — model your retirement income tax bill
- Compound Interest Projection — detailed projection of a single account
Frequently asked questions
How much do I need to retire in Canada?
A common benchmark is the "70% rule" — you need roughly 70% of your pre-retirement income. With CPP ($700–$1,433/month) and OAS ($727/month at 65), most Canadians need a personal portfolio of $500,000–$1,200,000 for a comfortable retirement. The exact number depends on your lifestyle, housing, and whether CPP/OAS covers a meaningful share of your spending. This calculator projects your portfolio runway to age 95 with your specific CPP and OAS inputs.
What is CPP and how much will I receive in Canada?
Canada Pension Plan (CPP) is a mandatory contributory pension. The 2025 maximum monthly benefit at age 65 is $1,433, but most Canadians receive $700–$900 based on their contribution history. You can start CPP as early as 60 (a permanent 36% reduction) or defer to 70 (a permanent 42% increase). Check your My Service Canada Account for your personalized estimate.
Should I take CPP at 60 or wait until 65 or 70?
The break-even for taking CPP at 60 vs 65 is approximately age 74 — you must live past 74 for the later start to pay more in lifetime income. Deferring from 65 to 70 breaks even at roughly age 82. In good health with family longevity, deferring CPP to 70 typically generates $50,000–$100,000 more income over a lifetime. This calculator shows both scenarios with your exact CPP estimate.
What is OAS in Canada and when does it start?
Old Age Security (OAS) is a universal government benefit starting at 65, paying $727.67/month in Q1 2025 (indexed quarterly). You can defer to 70 for a permanent 36% increase. OAS also increases by 10% at age 75 (since July 2022). High-income retirees above $93,454/year face OAS clawback at 15¢ per dollar over the threshold.
What is the safe withdrawal rate for a Canadian retiree?
The classic 4% rule (William Bengen, 1994) means you can withdraw 4% of your portfolio annually with a high probability of not running out over a 30-year retirement. For Canadians retiring at 65 and targeting age 95, 3.5–4% is appropriate. CPP and OAS help significantly — when government benefits cover 50%+ of spending, you can sustain a higher portfolio withdrawal rate on the remainder.