# Retirement Savings Goal Calculator: How Much Do I Need?

> Find the nest egg and monthly saving you need for the yearly after-tax income you want in retirement, with CPP, OAS, tax and inflation counted.

A 40-year-old in Ontario who wants $60,000 a year after tax from age 65 to 90 needs about $940,913 saved by 65, in 2026 dollars. With $80,000 already put away, a 5.5% yearly return and 2.2% inflation, that works out to about $1,654 a month from now until retirement. Average CPP and the full OAS pension are already counted.

The calculator starts from the income you want and works backwards to the savings that would pay it, taxes included.

## How is the nest egg worked out from a yearly income goal?

It's the sum of every year's withdrawal, each discounted back to the day you retire. Because your goal is after tax, the calculator first finds the pre-tax withdrawal that leaves it. In the example, CPP of $10,300 and OAS of $9,150 cover $19,450 of the year. Savings supply about $54,149 before tax, and $13,600 goes to income tax. Repeat that for every year to age 90, discounted at the return after inflation (about 3.2%), and the total is $940,913.

## How much do CPP and OAS lower what I have to save?

They pay part of the goal for life, so they shrink the nest egg a lot. In 2026 the largest CPP retirement pension at 65 is $1,507.65 a month, and the average for new pensions is $858.34. The full OAS pension from October 2026 is $762.50 a month at 65 to 74 and $838.75 from 75, and getting it in full takes 40 years in Canada after age 18. OAS is repaid at 15% of net income above $95,323, and the calculator applies that to your withdrawals. Use your own CPP figure from My Service Canada Account instead of the average.

## What happens to the monthly saving if I retire earlier or later?

Each year of delay adds a year of saving and removes a year of withdrawals, so the monthly amount moves fast. Here is the same goal and the same assumptions, with CPP and OAS still starting at 65:

| Retire at | Nest egg needed | Saving a month |
| --- | --- | --- |
| 60 | $1,148,363 | $2,958 |
| 65 | $940,913 | $1,654 |
| 70 | $804,823 | $980 |

## Which account should the monthly saving go into?

RRSP room is the usual first stop: 18% of last year's earned income, up to $33,810 for 2026, less any pension adjustment. The limit becomes $35,390 for 2027, and the deadline to count an RRSP contribution on your 2026 return is 1 March 2027. TFSA room is $7,000 for 2026; the 2027 TFSA limit isn't published yet. The calculator taxes every withdrawal, so a plan that leans on a TFSA needs less than shown. The [RRSP calculator](https://tax-services.ca/calculators/rrsp-retirement/rrsp-calculator) shows the tax saved by a contribution.

## What does this estimate leave out?

It uses the basic personal amount only, so the age amount, the pension income credit and pension income splitting would each lower the tax and the nest egg. It also assumes a steady return, withdrawals at the start of each year, and no home sale, GIS, spouse or one-off costs. Treat the result as a target and rerun it with a lower return and a later retirement age. The [retirement calculator](https://tax-services.ca/calculators/rrsp-retirement/retirement-calculator) projects what your current savings could become.

## Where does this information come from?

CPP, OAS and recovery tax figures come from the Service Canada pages listed below (checked October 2026) and the RRSP limits from the CRA; the tax and nest egg figures are estimates from this site's own tax engine. Checked in October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the [full disclaimer](https://tax-services.ca/disclaimer).

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Source: https://tax-services.ca/calculators/rrsp-retirement/retirement-savings-goal
Last updated: 2026-10-05
Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer