Retirement income under different strategies
Including CPP and OAS pensions
Assumptions used by the algorithm to produce the results in the chart:
Future return assumed by the algorithm
3%, net of fees
Actual investment return (net of fees) 6% for 10 years, then dropping to 3%
Amount of CPP as a % of the maximum (at 62) 90%
CPP as a % of maximum if start age is 65 + 85%
OAS pension Full amount
When CPP starts At age 70
When OAS starts At age 65
Amount of assets left at age 93 (using the algorithm approach) $150,000
Age when both spouses die 93
Actual investment return (net of fees) 6% for 10 years, then dropping to 3%
Amount of CPP as a % of the maximum (at 62) 90%
CPP as a % of maximum if start age is 65 + 85%
OAS pension Full amount
When CPP starts At age 70
When OAS starts At age 65
Amount of assets left at age 93 (using the algorithm approach) $150,000
Age when both spouses die 93
THE GLOBE AND MAIL Source: Author's calculations