SimulR the simplified tool for simulating retirement income

SimulR calculations

• Results are given in today’s dollars and are before taxes.
• The inflation rate used in this simulation is 2.5%.
• All calculations are based on the hypothesis that you will exhaust all savings at age 90.

• Weighted average income: A weighted average is used when values do not all have the same relative importance in the total. SimulR uses a weighted average to calculate the average earnings of an individual who would receive, for example,

  $30 000 from age 55 to 65 (for 10 years) and
  $50 000 from age 65 to 90 (for 25 years).
  Length of retirement: 90 – 55 = 35 years

  In this example, SimulR calculates the weighted average income as follows:
  

  (10 years x $30 000) + (25 years x $50 000)

  ---

  ÷ 35 years

• Retirement income: if you receive a retirement pension under the Québec Pension Plan (QPP) and that you are age 65 or over, this simulation does not take into account the possibility to not contribute to the QPP.
• For the purposes of this simulation, retirement income from savings is divided equally over time so that it remains as constant as possible for the duration of your retirement.
• The information provided in this simulation is for illustrative purposes only. Results are approximate and based on the information you gave.