Skip to main content

The Globe and Mail

Ready for retirement? Find out your replacement ratio

Retirement Readiness Calculator

One of the key variables in retirement planning is the replacement ratio, which refers to the percentage of your working income that you’ll need in retirement. Experts say retirement ratios can run from 50 per cent to 70 per cent or more, which is quite a wide range.

To calculate your personal replacement ratio, use this worksheet. Note your personal or household spending while in the workforce and then estimate your spending in retirement.

START

Part One: Compare your month-to-month costs

Many of these costs will be the same after you retire, but going into retirement debt-free can a big difference maker. You can adjust your monthly retired costs or leave them the same as your expenses while working.

Working
Retired

Part Two: Pre-retirement costs you won't face in retirement

These are costs that you face in your working years, but not in retirement.

Working
Retired

Part Three: Your kids and parents

Will you have kids at home after retirement? Or will they be otherwise financially dependent on you? Also, might your parents need your financial help at some point?

Working
Retired

Part Four: Annual leisure and entertainment

You'll have much more free time in retirement – how will you fill it, and what will the cost be?

Working
Retired

Story continues below advertisement

Report an error Licensing Options
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨