Retirement in Canada – How Much Do I Need To Save Before I Can Stop Working?

Thursday, January 13, 2022


Retirement isn't what it used to be in the past. Then, there was a certain retirement age where people retire. But now, people are worried about how much they have in their savings. Else they'll have to work even after their retirement age to keep up with expenses. That's why many young people aspire to save up a nest egg that is significant enough to support them through early retirement. This guide would educate you about retirement calculators, how to use them, the best ones, and how much you need to save before retiring early in Canada.

Retirement Calculator

A retirement calculator helps you understand how much you will need to save to reach your financial goal by the time you retire. If you are 25 years now and you currently earn $300 monthly, the calculator would forecast what age you'll reach your financial goal or how much more you need to earn and save before you reach financial liberty by your retirement age. It displays your current financial picture and forecasts your future financial situation.

Top 5 Retirement Calculators That You Need To Use

Managing your money so that it would sustain you throughout your life is very important. This is why retirement calculators for Canadians are the best tools to use when planning when you can call off work. Luckily many financial companies set up retirement calculators to help their customers and other Canadians prepare better for three days ahead. So here are five (5) of the best retirement calculators you can use to speculate how much you need to save before your retirement while in Canada.

Money Mentors Retirement Calculator

Money Mentors is a financial company that is about helping Canadians stay away from debt compilation. They are situated in Canada and have a 24/7 customer service team. Their online retirement calculator is to find out how much more money is needed to save for a surety and secure retirement. The parameters you need to use their calculator include your current age (which should be above 14 years and below 90 years). Other things that are required to be submitted include age for retirement in Canada, gross annual income, percent of income to save, expected income increase, current retirement savings, years of retirement income, and so much more.

Wealth Simple Retirement Calculator

Wealth Simple is another business that has a free retirement calculator for Canadians that wish to calculate their retirement savings. Their calculator helps users know how much more to save for retirement before the retirement age mark. To get started using this tool, you would insert your current financial picture (which includes your age, how much you make per year, and how much is in your savings. Other parameters include the province of residence, expected annual retirement income, and marital status.

Financial Mentor Retirement Planner

With a Financial mentor, you can calculate how much you need to save to reach your goal, how long your money will last when you spend a certain way, and how soon you can retire. Although, the interface seems to be very straightforward, they can be complex when calculating an advanced retirement plan. With Financial mentor, there are three levels of retirement calculator:

1. Simple retirement calculator which would require basic information like current age, are you plan to retire, life expectancy, and so on.

2. Conventional retirement savings would include current total savings, desired annual retirement income, desired estate at death, monthly savings contributions, and so much more.

3. Advanced retirement planning includes advanced spending inflation adjustment and post-retirement income streams.

Sun Life Financial Canada's retirement calculator.

This is another calculator that helps forecast how great or not-so-great your finances would be after retiring early in Canada. The sun Life Financial Canada's retirement calculator is slightly different from the rest in that it allows you to a savings goal toward your retirement age. It then breaks down your income and current savings so that you can meet the goal.

Personal Enhanced Retirement Calculator (PERC)

PERC helps you get retirement income for life so that you can get more without having to save more. It allows you to estimate how much money you can suck out of your finances, income, and asset while in retirement. PERC cannot be used by just anyone. It is best for those that are already within 20 years of retirement or are already retired. PERC as with the other calculator is also free.

How much do I need to save before retiring?

There is a general idea that guides how much you need to save before you retire. To continue the kind of life you were living or to successfully maintain the same or a similar lifestyle to that which you had before, you'll need about 70 - 80% of your current salary saved up. Let's use numbers. If you normally make about $500,000 yearly, you would need 70 or 80% of such amount saved in your retirement wallet to maintain the kind of life you lived before retirement.


Finances are the bedrock of a comfortable life among other things. After long years of working non-stop, a man deserves to rest while he is old to spend time with his family. That's why it is not just a good idea to plan towards retirement but also a necessity. A retirement calculator might not be a professional and official document but it can be used to view and plan toward your retirement savings. Now that you know 5 great retirement calculators you can use in Canada, start saving toward your future. If this article has been helpful for you, share with your friends and family so that more people can be aware of the importance of retirement savings.

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