Go to Main Content

Advertisement

By MoneySense Staff on January 1, 2010
Estimated reading time: 1 minute

RRSP Q&A: When can I retire and what will my income be?

By MoneySense Staff on January 1, 2010
Estimated reading time: 1 minute

This article is 12 years old. Some details may be outdated.

Advertisement

From February 16 to 19, 2010, MoneySense.ca’s top financial planners are answering your RRSP questions. For the full list of questions answered — or to submit a question of your own — click here. I am 38 years old and work for the British Columbia government, and have been doing so since 2000. I am entitled to a pension and am able to retire at 57 years old, or early at 55 years old with a penalty. My dream has always been to consider retirement in my 50s. I am currently making around $ 55,000/year. I currently have $171,839 in RRSPs. What would be a realistic retirement age, and what type of income can I expect to receive? Also, what kind of lifestyle may I look forward to living? —DGG Karin Mizgala: Full pension at age 57 should provide you with around 60% of your earnings prior to retirement. Assuming your earnings average $75,000 prior to retirement, inflation is 2.5%, you earn a rate of return of 5% on your RSPs, you get maximum Canada Pension and Old Age Security and you make no additional contributions to your RSP, you can expect after-tax income of roughly $43,000 in today’s dollars through to your age 95. Check your pension statement to verify how pension earnings are calculated. Next question: Can’t get rid of my debt, sell RRSP? Back to main RRSP Q&A page. What do you think? Let us know below.

Comments Cancel reply

Related Articles

best high interest savings account

The best no-fee high-interest savings accounts in Canada right now

Compare the best no-fee high-interest savings accounts and find the best one that fits your savings needs.

The best no-fee high-interest savings accounts in Canada right now

RBC hiking fees on cash back Mastercard, but sweetening the rewards

Two RBC Mastercard options are getting a serious facelift in terms of benefits, but there are a few catches.

RBC hiking fees on cash back Mastercard, but sweetening the rewards

A Roots clothing store is pictured in Ottawa, Tuesday, Sept. 13, 2022.

Stock news for investors: Spin Master, Empire, and Roots make major deals

Spin Master buys Hapiko, Empire expands its pharmacy business, and Roots agrees to a $4.10-per-share go-private deal.

Stock news for investors: Spin Master, Empire, and Roots make major deals

Couple sitting at a desk across from financial planner

Financial Planning

When financial expertise becomes a blind spot

The technically correct financial decision isn’t always the right one. Here’s why expertise can create blind spots when it...

When financial expertise becomes a blind spot

The Wealthy Barber retires

David Chilton is retiring at 65 after four decades in personal finance. He shares why he’s stepping back and...

The Wealthy Barber retires

Angry man holds credit card and mobile phone, sits next to clothes in suitcase, has problems with paying online.

Major cash back changes coming to Scotia Momentum credit cards

In October, how you earn cash back on the Scotia Momentum credit card lineup will change in two of...

Major cash back changes coming to Scotia Momentum credit cards

alberta child and family benefit

Bigger Alberta Child and Family Benefit payments going out soon

The third Alberta Child and Family Benefit payment of 2026 will be bigger than the last, with July ringing...

Bigger Alberta Child and Family Benefit payments going out soon

Secretary of State of Canada Revenue Agency and Financial Institutions Wayne Long rises during question period on Parliament Hill in Ottawa on Thursday, Jan. 29, 2026

Canada’s tax code needs an overhaul. Here’s what reform could mean

Ottawa says long-awaited tax reform is a priority. Here’s what experts say needs to change and why overhauling Canada’s...

Canada’s tax code needs an overhaul. Here’s what reform could mean

Fraud and Scams

What happens if your information lands up on the dark web?

What happens if your information lands up on the dark web?

Canada child benefit

Canada Child Benefit August payments drop on Thursday: Here’s the schedule for the rest of 2026

Canada's new benefit year began in July, increasing several benefit amounts by roughly 2%.

Canada Child Benefit August payments drop on Thursday: Here’s the schedule for the rest of 2026