Your assumptions · Today’s dollars

    Will your retirement savings keep up with inflation?

    Inflation matters most over long horizons. At the Bank of Canada’s 2% target, $45,000 of yearly spending today costs $81,511 in 30 years; at Canada’s actual 2.2% average of the last 25 years it costs $86,338. This tool works in today’s dollars with your real return, so you can see what your savings would actually buy.

    Mitey holds a brass compass and shades his eyes, looking for the way.

    Today’s dollars · Real return

    Will your savings keep up with prices in retirement?

    At 65 you would have

    $402,049in today’s dollars
    In the dollars of that year
    $728,256
    You put in (today’s dollars)
    $230,000
    You put in (dollars as paid)
    $298,277
    Real return per year
    2.94%
    Needed at 65 to draw $45,000 a year to 90
    $811,951

    The savings run short at age 75. Adding about $8,698 a year (today’s dollars) until 65 would close the gap.

    $0$200k$400k$600kAge 40Age 50Age 60Age 70Age 80Age 90
    Balance, today’s dollars Balance, dollars of that year

    Source: Statistics Canada, table 18-10-0005-01 (annual average CPI, 1914 to 2025). Retrieved October 30, 2026. Inflation presets: the Bank of Canada’s 2% target, and the annualized change in Statistics Canada’s annual average CPI over the 10 and 25 years to 2025. Returns and spending are your assumptions; this is arithmetic, not a forecast or advice.

    The plan at a glance

    Years until retirement

    30

    25 years in retirement

    Yearly draw on savings

    $45,000

    Spending minus other income, today’s dollars

    Shortfall at retirement

    $409,902

    Compared with what the draw needs, today’s dollars

    Growth on top of what you put in

    $172,049

    Today’s dollars

    Straight answers

    Questions people ask

    Why work in today’s dollars?

    A balance of $1 million in 30 years sounds large, but at 2% inflation it buys what about $552,000 buys today. Showing every amount in today’s dollars, and growing savings at the real return, makes the result something you can compare with your spending now.

    Does this include CPP and OAS?

    Only if you enter them. Canada Pension Plan and Old Age Security benefits are indexed to the CPI, and most Canadians receive both, but the amounts depend on your earnings history, the age you start them and your years in Canada. Enter your expected yearly amount in today’s dollars as other income, or use a full planner such as RetirementPlanner.ca.

    Is this a forecast or financial advice?

    No. It is arithmetic on the return, inflation rate and spending you choose. It does not include tax, RRSP or RRIF rules, or investment risk. Try more than one inflation rate; nobody knows the future rate.

    Educational information, not financial advice. Read how the CPI and these tools work.

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