Save. Spend. Splurge.

How much I can expect to receive from the Government of Canada in retirement

I’m curious about how much I should save for retirement and what I will get, so I always enjoy doing these retirement calculators.

One of the ones I recommend all Canadians do for a lark is the Government of Canada one, I was reminded to re-do it again after Rob Carrick tweeted about it.

Not that I’m relying on any of this money (I’m of the firm belief that I will be 100% on my own), here are my results:

NOTE: This is just my half of the retirement pie, and my partner will be contributing an equal amount on his side

OLD AGE SECURITY (OAS) AT AGE 67 = $6624 / year

…that is, if my income doesn’t exceed $71,592 by the time I retire at 67.


OAS DEFERRAL TO AGE 72 = $9012 / year

If I decide to hold off on grabbing that money for 5 more years (age of 72), I can get more money: $9012 / year or +$2389 a year

There are two schools of thought on OAS deferral:

1. You hold off on OAS and get more money… because you get more money if you wait.

2. You don’t hold off on OAS and take it ASAP because you never know when/if you’ll croak within 5 years and you can use the money now and invest it or have it in your greedy little paws instead of letting the government borrow it for another 5 years.

I’m leaning towards #2.


I have no idea how to calculate this so I put it at nice, low, $15,000 a year as an annual earned income (I take my salary in dividends so I am technically not entitled to a lot of CPP as I haven’t paid into it).

CPP DEFERRAL TO AGE 70 = $5304 / year

If I don’t have any more earned income for the rest of my life, it still stays at $5304 / year.



I have about $61,429 saved in my RRSPs and I do not plan on contributing any more (I can’t, I take my income in dividends).

I also plan on getting about 5% back on my RRSPs.

With these assumptions of course…

  • Inflation rate of 2 %;
  • Investment rate of return of 5 % until you start your pension;
  • Investment rate of return of 4 % after you start your pension;
  • Contributions are made at the end of each year;
  • You continue to contribute up to your selected age (no later than 70); and
  • You will have no more savings in this plan by the age of 83.





Looks low to me, but as it stands, at the age of 65, I can expect to get about $23,190 per year in retirement including my current RRSPs.

Without my current RRSPs, I am looking at a paltry $11,928 a year as a gross income.


Actually less than that because I just noticed my CPP shows up at $5304 (age 70) instead of $3744 at the age of 65.

I am looking more at an annual government pension plan of $10,368 sans my RRSPs

This is why I’m saving above and beyond and not relying on the government.

My REAL retirement income that I can rely on? Whatever my “Other Income” is.




  • Cassie

    I’ve been running under the assumption that those programs won’t exist by the time I retire, so I’ve never actually run the numbers on them. I’m assuming I’ll have to completely fund my own retirement, and anything that does come from the government will just be gravy. You’ve peaked my interest though, so I might try punching my numbers into their calculator now.

  • Taylor Lee @ Yuppie Millennial

    Right now, I haven’t earned enough credits to qualify for SS benefits (minimum of 10 years in the workforce). But if I continue working at my job (or one that pays similarly) for another 10 years as is planned, then quit and never earn another dime in my life, I’ll end up with ~$1,250/month in Social Security benefits (theoretically). If I continue to do relatively low wage work to keep myself occupied after 35, it might go up to ~$1,500/month. All that said, I’d be surprised if SS didn’t become means-tested by the time I’m ready to retire.

    Right now I have around 94k in tax-advantaged retirement accounts (401k, Roth IRA, Trad IRA). If I never contribute another dime, I’ll have $644k by 65 (assuming 5% effective growth after inflation), or $19k/year at 4% SWR. If I continue contributing the max for my 401k + get 4% match yearly until 35, I’ll have roughly $445k by the time I stop working and $1.925MM once I hit 65, resulting in $58k/year.

    So I guess the takeaway is:
    – Semi-retire now = 19k/year at retirement (probably more because I would have to earn some income to sustain myself until 65, thus pushing me over the edge into minimum SS credits)
    – Semi-retire in 10 years = 73k/year at retirement

    I’m liking my odds!

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