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Retirement Planning Analysis for

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First Name Surname Birthdate (dd.mm.yyyy)
Client information
Spousal information
i
The Province of Residence is required to estimate the income tax rate. If the retirement residence is expected to be in a different province than the current residence, the intended province of retirement should be entered.
Pre-Retirement Income and Expenses
Income
$
$
$
$
$
$
%
%
$
$
Employer Sponsored Savings Plans
$
$
$
$
$
$
%
%
%
%
%
%
$
$
%
%

Personal Savings and Investments

$
$
$
$
$
$
$
$
$
$
%
%
$
$
$
$
%
%
$
$
$
$
%

Liquidation and acquisition of assets, inheritances and other large expenditures or receipts of cash
i
Use this table to indicate any major transaction that causes a significant, non-recurring increase or decrease in financial assets and to whom (for couples) any tax liability will accrue. For shared assets, the option of splitting the capital gain between spouses is available. This table can be used, for example, to reflect the sale of a business or real estate, purchase of an annuity, debt retirement or the receipt of an inheritance.

Transaction
Description		 Time
frame
(Yrs)		 Type Amount Taxable Capital
Gain		 Tax Attribution
$
$
$
$
$
$
$
$
$
$
$
$
%
$
$
$

Retirement Income

$
$
Government Pensions
$
$
$
$
Defined Benefit Pension Plan (RPP)
i
The program administrator of the Defined Benefit Pension Plan will have to be consulted in order to determine Pension Amounts, Bridge Benefits, Survivor Benefits, and Indexing rates . That information may also be available on the annual or semi-annual pension statement.
Have regular RPP benefits commenced?
i
Answer "No" to this question if bridge benefits are currently being received and which will end when regular benefits commence.
$
$
%
%
$
$
%
%
%
%
Tax Deferred Savings Income
$
$
%
%
$
$
%
%

Post Retirement Investor Profile

%
%
%
1 2 3 4 5 6 7 8 9 10 11 12 13

Self Income

Self Income Spousal Income Payroll Tax Items Income Tax Items Federal British Columbia Alberta Saskatchewan Manitoba Ontario Quebec New Brunswick Nova Scotia Prince Edward Island Newfoundland and Labrador Other
Asset Liquidations and Purchases (Tax Deferred Annual Contributions) Yrs to Ret Capital at Jan 1 of retirement year PV of shortfall Pre Retirement rate of return Investment Profile Std Dev CPP exemption Personal Exemption Federal British Columbia Alberta Saskatchewan Manitoba Ontario Quebec New Brunswick Nova Scotia Prince Edward Island Newfoundland and Labrador
Participants OAS Clawback Calculations Amount Capital Gain DPSP Expected Annual Returns Initial Deposit RRSP Rebate Investment Profile Interest Dividends Cap Gains CoL Yrs in Ret Tax Deferred Estate Value of Cap Shortfall at retirement Post Retirement rate of return CPP Max Contribution Age Threshold Health Premium Health Services Fund Prescription Drug Plan BC AB SK MB ON PQ NB NS PE NL
Full Time Part Time Bridge RPP RPP Survivor? CPP CPP Survivor OAS Annuity 1 Annuity 2 Rate Full Time Part Time Bridge RPP RPP Survivor CPP CPP Survivor OAS Annuity 1 Annuity 2 Years Liquidation Acquisition Self Spouse Defined Benefit Pension Plan Self Spouse RRSP Contributions Tax Free Savings Account Self Risk Averse SS Reduction Final Disposition Non Taxable Estate (TFSA) Contribution increase required Annual Cost of Living Increase (i) CPP Contribution rate Age Exemption Amount Single Spouse Tax Reduction Credit
Start Yr Start Yr Start Yr Start Yr Start Yr Start Yr Start Yr Start Yr Start Yr Start Yr Threshold Start Yr Start Yr Start Yr Start Yr Start Yr Start Yr Start Yr Start Yr Start Yr Start Yr YTR Pct of Salary Pct of Salary Current Excess/Unused Contribution Room Self Annuity Calculations Spouse Annuity Calculations Initial Annual Increase Spouse Conservative Start Yr Start Yr Start Yr Start Yr Date Taxable Estate (Probate) Budget Decrease Required Average pre retirement tax rate Implied Max Salary Age Threshold Amount Reduction Base Amount
100% Clawback YIR Ann Increase Annual Maximums Contributions cease Start Start After Moderate Years Estate Debt future dollars Average post retirement tax rate EI Max Contribution Age clawback rate Rate
OAS Maximum Calculations Defined Contribution Pension Plan Cease Date Pct of Salary Non Maximized Contribution End End Cease Aggressive Final Expenses Estate Total current dollars EI Contribution Rate Full age clawback
Today CPP Max CPP Max Self Total Spouse Total Cease Yr Ann Maximum Annual Increase Initial Partial Annuity Initial Partial Annuity Speculative Self Spouse Total annual contributions at retirement ? Year End Assets Based on Random Rates of Return Implied Max Salary Pension exemption Surtax Surtax Surtax Surtax Surtax Surtax Surtax Surtax Surtax Surtax Surtax Surtax Maximum
CPI StopYr StopYr StopYr StopYr StopYr StopYr StopYr StopYr StopYr StopYr StopYr StopYr StopYr StopYr StopYr StopYr StopYr StopYr StopYr StopYr Final Partial Ann Increase Yrs to Increase Final Partial Annuity Final Partial Annuity Years to Increase and Amount TFSA Retirement Date StopYr StopYr StopYr StopYr Expenses at retirementt Accumulation Depletion Tax Credit rate
CPI +1 OAS Clawback Calculations Contributions and balances are reflected in Column CU and CQ Amount of Increase r-i CPI r-i CPI Contributions Annual Max Non Registered (Taxable) Savings Returns from Taxable Account Income & RRSP Annuity & Tax Rebate - contributions Taxes Payable Delay retirement by Self Tax Calculations (Current Dollars) Dividend tax credit Combined Income Less Spousal Tax Calculations (Current Dollars) Combined Income less Reduction
Total Taxable Earnings Percentage of Investment Income Current Dollars Future $ Self Spouse Current PA Annual Contribution Current PA Annual Contribution (1+i)/(1+r) (1+i)/(1+r) Tax Deferred Annual Rate of Return Self Spouse Withdrawal Debt Servicing Withdrawal Non Taxable Budget Withdrawal Deposit Asset Purchase Withdrawal Taxable Pre Retirement Self Spouse Combined Payroll Taxes Combined Total Taxes Combined Tax Rate Rolled Over RRSP Taxes Budget Capital Shortfall Total SD & Employment Contributions Contributions+ Rebate dep Annual Increase in Assets Employment Income Current $ Payroll Tax Calculations Current $ Pension Splitting Calculations Taxable Income Total Taxable Income Taxable income in Retirement Employment Income Current $ Payroll Tax Calculations Current $ Pension Splitting Calculations Taxable Income Total Taxable Income Taxable income in Retirement
Year Taxable Taxable TAXABLE TAXABLE CPP TOTAL Net OAS RRSP Rebate Gross Income OAS Clawback Capital Capital Gain Own Total Own Total Self Spouse PA Increase Room PA Increase Room Withdrawal Balance Withdrawal Balance Balance Room Contribution Room Contribution Budget For Assets Balance Transfer to TFSA Rebate Deposit Increase (Taxable) Balance Retirement Final Expenses Total Surplus Asset Acquistion Budget Expenses Balance Total End Year Assets Budget Shortfall Total Expense, Taxes & Savings Charted Income Estimated Combined Income Tax Rate Pension Income Splitting Reduction Net Pension Dividend Gross Up Taxable Cap Gain RRSP Contribution RRSP Rebate RRSP Rebate RRSP Rebate RRSP Rebate RRSP Rebate Health Premium RRSP Rebate Health Premium Drug Premium RRSP Rebate RRSP Rebate RRSP Rebate RRSP Rebate RRSP Rebate RRSP Rebate Pension Income Splitting Reduction Net Pension Dividend Gross Up Taxable Cap Gain RRSP Contribution RRSP Rebate RRSP Rebate RRSP Rebate RRSP Rebate RRSP Rebate Health Premium RRSP Rebate Health Premium Drug Premium RRSP Rebate RRSP Rebate RRSP Rebate RRSP Rebate RRSP Rebate RRSP Rebate Self Spouse Self Spouse Self Spouse Self Spouse Self Spouse Self Spouse Self Spouse Self Spouse Self Spouse Self Spouse
1.1.2001 12.1.1931 Interest Dividend Cap Gain Potential Actual Contributions Withdrawals Self Spouse Balance Contribution Limit Pension Adjustment Contribution Limit Pension Adjustment Annuity Budget For Assets Annuity Budget For Assets Self Spouse Interest Dividend Cap Gain Total Returns Expenses Federal Provincial Federal Provincial Shortfall Capital Withdrawn Savings Contributions Taxes RRSP Tax Rebate Capital Withdrawn Employment Income Canada/Quebec Pension Plan Old Age Security Registered Pension Plan Other Annuities PV of Shortfall Pre Retirement Post Retirement Std Dev Random Rate Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax Tax Surtax
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB AC AD AE AF AG AH AI AJ AK AL AM AN AO AP AQ AR AS AT AU AV AW AX AY AZ BA BB BC BD BE BF BG BH BI BJ BK BL BM BN BO BP BQ BR BS BT BU BV BW BX BY BZ CA CB CC CD CE CF CG CH CI CJ CK CL CM CN CO CP CQ CR CS CT CU CV CW CX CY CZ DA DB DC DD DE DF DG DH DI DJ DK DL DM DN DO DP DQ DR DS DT DU DV DW DX DY DZ EA EB EC ED EE EF EG EH EI EJ EK EL EM EN EO EP EQ ER ES ET EU EV EW EX EY EZ FA FB FC FD FE FF FG FH FI FJ FK FL FM FN FO FP FQ FR FS FT FU FV FW FX FY FZ GA GB GC GD GE GF GG GH GI GJ GK GL GM GN GO GP GQ GR GS GT GU GV GW GX GY GZ HA HB HC HD HE HF HG HH HI HJ HK HL HM HN HO HP HQ HR HS HT HU HV HW HX HY HZ IA IB IC ID IE IF IG IH II IJ IK IL IM IN IO IP IQ IR IS IT IU IV IW IX IY IZ JA JB JC JD JE JF JG JH JI JJ JK JL JM JN JO JP JQ JR JS JT JU JV JW JX JY JZ KA KB KC KD KE KF KG KH KI KJ KK KL KM KN KO KP KQ KR KS KT

Input Summary

Current Situation Plans for Retirement
Age Province of Residence
Employment Status Initial retirement budget (Current Dollars)
Years in workforce since age 18 Updated retirement budget (Current Dollars)
Contributing to a Defined Benefit Pension Plan
Contributing to a Defined Contribution Pension Plan
Contributing to a Defered Profit Sharing Plan Years until retirement
Most recent Pension Adjustment Years in retirement
Value of Non Taxable Accounts on December 31 of past year Age when tax deferred savings withdrawals begin
Value of Tax Deferred Accounts on December 31 of past year Estimated final expenses
Value of Taxable Accounts on December 31 of past year Desired Estate Value
Pre Retirement Investor Profile Post Retirement Investor Profile
Expected pre-retirement rate of return on investments Expected post-retirement rate of return on investments
Based on historical data, this rate of return is excessive for this investor profile Based on historical data, this rate of return is excessive for this investor profile
Expected annual increase in the Consumer Price Index
Expected annual increase in cost of living

This document is designed to be a guideline for developing your personal investment plan and is not designed to predict the future. The results appearing in this plan are based on user estimates and other assumptions. All rates of return and rates of inflation incorporated into this plan are assumptions. If the rate of return that you actually achieve on your investments is less than the assumption, it will impact the results in a negative manner and may result in a significant funding shortfall that could prevent you from achieving your financial goals. If the average rate of inflation during your lifetime is greater than the assumptions it will impact the results in a negative manner and may result in a significant funding shortfall that could prevent you from achieving your financial goals. Nothing in this plan should be interpreted as a guaranteed. No responsibility is assumed for any losses, whether direct, indirect, special or consequential that arise out of the use of this document. The information contained herein is from sources believed to be reliable but accuracy cannot be guaranteed. All information in this plan is subject to change without notice.

Income & Expenses

The chart below represents the relationship between income, expenses, taxes and savings. Incoming and outgoing cash are represented by the stacked columns and the horizontal lines, respectively.

Pre-Retirement Analysis

Prior to retirement, income, expenses and estimated taxes are illustrated to provide a visual representation of whether or not the assumed savings contributions are indeed realistic. Budgets can change significantly over time depending on family circumstances - the further away from retirement, the more opportunity for change. For that reason, all savings contribution assumptions that have been input are included in the final calculation, regardless of their feasibility. However, if there are large or persistent gaps between income and total expenses plus savings contributions in the pre-retirement years, this provides you with a reality check on your assumptions. Estimate shortfalls or surpluses are indicated in the cash flow table.

Post Retirement Analysis

During retirment, any shortfall between retirement income and total expenses plus taxes is automatically deducted from personal savings. As long as personal savings are sufficient, the household expenses will be met. Once personal savings are depleted, a gap will appear between the stacked column and the total of expenses plus taxes, indicating that the retirement plan needs to be adjusted. Estimated shortfalls or surpluses are indicated on the cash flow table.

  • Employment Income
  • RRSP Tax Rebate
  • Registered Pension Plan
  • Canada/Quebec Pension Plan
  • Old Age Security
  • Other Annuities
  • Capital Withdrawn
  • Savings Contributions
  • Expenses
  • Taxes
  • Total Expense, Taxes & Savings

    • Methodology and Assumptions for Annual Budget Projections

    Income

    Each item is a combined total of both spouses. Incomes are gross incomes. Refer below to taxes for an explanation as how they are calculated.
    Employment income includes both full time and miscellaneous or part time employment during retirement.
    Registered Pension Plans are defined benefit plans and includes the annual total of all bridge benefits, regular benefits and survivor benefits, if applicable. Benefits are adjusted according to assumed CPI when so directed.
    Canada Pension Plan (CPP) includes regular benefits and survivor benefits, if applicable. These benefits are adjusted for early or delayed withdrawal and assumed changes in CPI.
    Old Age Security (OAS) pensions are adjusted for delayed withdrawals and assumed changes in CPI. Pensions are clawed back for high incomes, in accordance with legistlation.
    Other pensions and annuities are adjusted for assumed CPI changes when so directed.
    Tax rebates for RRSP contributions are included in the following year cash flow. If the choice to re-invest this rebate, it will be reflected in an increased savings contributions.

    *Cash flow from the purchase or sale of assets, inheritances, etc. will not be illustrated in this chart. The increase or decrease in capital from any such transaction will be incorporated in the chart on the following page.

    Expenses and Savings

    The total is the sum of all household expenses, savings contributions and taxes.
    Expenses are automatically adjusted for the estimated annual cost of living increase.
    Savings Contributions are combined totals of both spouses and include both self directed savings and contributions to any employer sponsored pension plan, and RRSP tax rebates when so directed.

    Taxes

    It is assumed that there are no income tax liabilities or non realized capital gains when this report was prepared. Annual income tax estimate include a liability for all capital gains incurred in that year, even if they will be deferred to future years. The estimated income taxes are based on the assumption that tax policies in the various jurisdictions will remain in force throughout and that tax brackets will be adjusted with changes in CPI. The following non refundable tax credits are calculated: Personal and Age Exemptions, Pension Exemption, Federal Employment Tax Credit, Low Income Tax Credits (for applicable provinces), Family Tax Credit (MB), Canadian Dividend Tax Credit. Refundable Tax Credits are not calculated. Medical (ON, PQ) and prescription drug insurance premiums (PQ) are also calculated. Residents of other provinces with health insurance premiums should include them in their household budget estimates. Pension income splitting for couples is automatically calculated after age 65. Payroll tax estimates for all employment income are based on those rates for non self employed earners.

    Net Worth

    Projected total financial assets at Dec 31 of year preceeding
    retirement (previous year if retirement has commenced)    		 Non Taxable Financial Assets of estate
    Projected total financial assets (or debt) of estate ( ) Financial Assets of estate subject to estate taxes
    Financial Assets of estate subject to both deferred income and estate taxes
    Estimated Unused (Excess) RRSP contribution at retirement ( ) ( )

    Methodology and Assumptions

    Savings Accumulation

    Tax deferred savings includes RRSPs, defined contribution pension plans, deferred profit sharing plans, life income funds or locked in retirement accounts. Non taxable accounts are TFSAs.

    Savings Depletion

    Tax deferred savings will be withdrawn on an annuitized basis, commencing on the date as indicated by your preferences, subject to requirements of Canadian legislation.
    Shortfalls in retirement income will be addressed first by withdrawals from your taxable accounts, then by withdrawals from your TFSA and then by further withdrawals from your tax deferred accounts (in addition to the annual annuitized amount). When all savings are depleted, budget shortfalls will be applied to debt.
    This method is intended to address withdrawal minimums for tax deferred accounts according to Canadian legislation and limit income taxes on your estate. In practice, a different sequence of withdrawals may be more appropriate for you.

    Debt

    It is assumed that household debt will be retired through the period in question and accounting for these payments as budgeted items. Any debt that is illustrated on the chart is calculated as a result of not having sufficient savings to cover any annual budget deficit. Additional unretired household debt is not calculated nor illustrated.

    Options to Address Savings Shortfall :

    There are three possible solutions over control can be exercised.Each is presented here as a stand-alone solution but they can be used in combination with one another:

    If you are already retired, only option 1 is applicable.

    The first impulse to solving a shortfall may be to increase the projected rate of return on investments. This solution is discouraged because there is no control over it and it has a lower probability of success than the other solutions.

    Option 1
    The financial assets at retirement are projected to be . This amount would be sufficient if annual budget expenses were reduced by about .

    Option 2
    The estimated savings shortfall at retirement for the desired budget are . If annual savings contributions were increased until retirement by about sufficient capital should be accumulated to fund the desired budget.

    Option 3
    Savings will be depleted prior to the end of retirement. If retirement(s) were delayed by years, there should be sufficient savings to fund your desired budget in retirement. This solution also implies that the time in retirement would reduced by the same amount of time by which retirement is delayed.

    Other Potential Solutions
    If there are other non financial assets, liquidating these assets in order to fund retirement may be a solution. This may require a home downsizing or taking other steps to unlock any built up home equity.

    These suggested solutions are inexact. The plan should be run again experimenting with various compromises until the best solution is found.

    Monte Carlo Simulation

    Your basic results indicate a final estate value of

    According to the investor profile selected, the standard deviation used to calculate the volatility of investments is:

    • in the pre-retirement period, and
    • during retirement

    Based on the investor profile chosen, the Monte Carlo simulation indicates a

    • probability of successfully funding your retirement plan

    According to an article by Deborah Stavis CFP® appearing in September 2014 of www.dailyworth.com “the objective is not to achieve a 100 percent probability of success, as you may have to sacrifice your current lifestyle goals unnecessarily… Monte Carlo analysis helps us prioritize how we can best spend, save and share our hard-earned capital.” At a minimum the probability for having excess funds should be 66%.

    The top chart on the right illustrates where this probability lies in the 4 categories of having a successful retirement, while the bottom chart on the right illustrates how these probabilities are distributed along the range of possible final estate values.

    The Monte Carlo simulation should be run each year to determine if the probability of success has changed and if any action should be taken.

    Probability of Success

    Annual Cash Flow

    Year Employment Income Canada Pension Plan Old Age Security Registered Pension Plan Deferred Tax (RRIF) Annuities Other Annuities Other Savings Withdrawals RRSP Tax Rebate Bulk Cash Received Bulk Cash Spent Savings Contributions Expenses Taxes Cash Flow Surplus (Deficit)

    Progress Report

    Year Planned Contri
    bution    		 Planned With
    drawal    		 Year End Target Year End Value
    Year Planned Contri
    bution    		 Planned With
    drawal    		 Year End Target Year End Value
    Year Planned Contri
    bution    		 Planned With
    drawal    		 Year End Target Year End Value

    CAUTION