Budget calculator

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  The results you received from this calculator is for your information only. The figures are not guaranteed, as they are based on assumptions that are certain to change.

The option “Adult student” applies if you are not working because you are in school for an extended period.

Please enter a monthly income above $0.

The Canada Pension Plan (CPP). You’ve paid into the Canadian government pension plan because you worked/are working in any territory or province other than Quebec.

The Quebec Pension Plan (QPP). You’ve paid into the Quebec government pension plan because you worked/are working in Quebec.

Both CPP and QPP. You’ve worked in Quebec and elsewhere in Canada. QPP can only be taken if you live in Quebec; otherwise, it will be CPP.

Neither CPP nor QPP. You’ve never worked anywhere in Canada.

The longer you pay into CPP/QPP and the more you earn during that time, the higher your CPP/QPP payments will be when you retire. So any significant interruptions in your working life or reductions in your earnings – such as long periods of unemployment, caregiving, part-time work or attending school – can reduce your eventual CPP/QPP income. The CPP drop-out provision partly protects you from employment interruptions or stretches of low income, by automatically dropping 17% (up to 8 years) of your lowest earnings from the calculation of your pension amount.

Child-rearing provision. If you stopped working or took a lower-paying job so you could stay home to raise your children, you may be able to use the child-rearing provision to increase your CPP benefits.

If you’re self-employed, you’re responsible for your entire CPP/QPP contribution. (Employers and employees share the contribution equally.)

Early/late retirement. You can apply for and receive a full CPP retirement pension at age 65, a reduced amount as early as age 60, or an increased amount as late as age 70.

Your pension will be paid by the plan that applies to your place of residence – QPP if you live in Quebec, CPP if you live anywhere else in Canada – regardless of where in Canada you have worked. If you have worked in Quebec as well as elsewhere in the country, you don’t have to apply to both plans.

The standard age for beginning to receive your CPP retirement pension is the month after your 65th birthday. However, you can take a reduced pension as early as age 60 or begin receiving an increased pension after age 65.

Figures are in today’s dollars, using the average CPP/QPP payment amount (which is indexed by the government to rise slightly each year).

If you start it before age 65, your pension could be reduced, by up to 36% if you start at age 60. If you take it after age 65, your pension could be increased, by up to 42% if you wait until age 70.

If you’ve never worked in Canada this calculator may not be helpful to you. Talk to your advisor about planning and saving for other sources of retirement income.

If you've never worked in Canada up to now, you won't receive a CPP/QPP pension, since you have to work here and contribute to CPP/QPP to be eligible. If you were to start working in Canada and contributing to CPP/QPP, you would be eligible for a CPP/QPP pension when you're ready to retire. If you worked before you came to Canada, you may qualify for a pension from that country. Your advisor should be able to help you find out where you stand and how to apply for a foreign pension, and help you start saving and planning for other sources of retirement income.