The rates and dollar figures shown are not guaranteed and could be higher or lower, depending on a number of factors including market performance. The information provided is based on estimates at the current date only. You should review your retirement plan periodically. Neither Manulife nor any of its agents, employees or representatives are providing legal, tax or investment advice in this website.
The rate of return used to estimate the growth of your group retirement savings plan is based on the number of years until your planned retirement age, and either how your assets are invested with Manulife currently or if you are a new client to Manulife on your chosen investor strategy.
For each investor style, a range of rate of return estimates (net of inflation), has been calculated using the historical performance returns of representative market indexes and the average of asset-class specific funds that are sold in Canada. Each investor style has an estimated return that is updated periodically by Manulife Financial Group Savings and Retirement Solutions. From the range of rate of return estimates, the rate used for the purposes of your calculation has historically been exceeded approximately 70% of the time. Your actual return will be impacted by any investment management fees and expenses incurred. Note: Return estimates are not a guarantee of future results and are for illustration purposes only.
Investments and savings identified by you within this calculator, including your other retirement savings and spousal retirement savings, will use the same rate of return to estimate future growth. This rate of return estimate is not based on the past performance of your investments and does not guarantee future returns.
The estimates shown assume that no withdrawals are made from your retirement savings account(s) prior to retirement. Withdrawals will reduce the value of your retirement savings account(s) immediately and consequently may affect the value of your retirement savings account(s) at your retirement date.
Your suggested ongoing contribution amount refers to the total amount to be put towards retirement savings to help you reach your retirement goals, based on the given assumptions. All expressions of ongoing contribution amounts assume that ongoing contributions stop when you retire and, likewise, your spouse’s ongoing contributions cease when he/she retires. Contribution amounts may include employee and employer contributions made to your company’s qualified retirement plan, deposits to other registered and non-registered accounts.
Old Age Security (OAS) benefits are based on age and residence requirements. For the purpose of the retirement goal-setting tool, we have assumed that all users are eligible to receive maximum OAS benefits, and have used the maximum OAS payout as a starting point. The difference between your annual retirement income goal and the current year’s OAS threshold is calculated. If the difference is a negative, then maximum OAS benefits will apply to you. If the difference is a positive, then a repayment amount is calculated; the repayment amount is approximately 15% of the difference. For the purpose of this calculator, this amount is deducted from the maximum OAS benefit to determine your assumed OAS benefit. To find out more about specific OAS payouts, the current year’s threshold value and eligibility, visit www.sdc.gc.ca.
To receive full Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) benefits, you must be age 65 at retirement and have contributed the maximum CPP/QPP payments for the contributory period, on an annual basis, according to annual yearly maximum pensionable earnings (YMPE) amounts. In order to project your CPP benefit in retirement, we used 70% of your projected annual income at retirement and then estimated your CPP/QPP benefits as 25% of your annual retirement income. If your retirement age is not equal to 65, we have factored in a .5% per month adjustment to your CPP/QPP benefit payout; this could be an increase or decrease depending on your planned retirement age. If 70% of your projected annual income at retirement was greater than the current year’s YMPE and your retirement age was 65, your calculations would assume a full CPP/QPP benefit. To find out more on specific payout amounts and eligibility on CPP/QPP, visit www.sdc.gc.ca. |
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