RRSP Withdrawal Simulator: Compare Different Retirement Withdrawal Strategies

RRSP withdrawal simulator and retirement planning Canada

This RRSP withdrawal simulator helps compare different retirement withdrawal strategies. It allows you to test how RRSP withdrawals, investment returns, tax assumptions, inflation, and non-registered account returns may affect long-term retirement outcomes.

The goal is not to predict the future exactly, but to help users understand how different assumptions may change retirement asset sustainability.

Setup Instructions

RRSP Balance: The default RRSP balance is set at $2,000,000. This can represent either an individual or a couple’s combined RRSP amount, and it can be adjusted.
Investment Return Assumption: There are three options:
- FixValue: Enter your expected future annual return as a fixed value.
- HistoryAve: Uses the average annual return of the S&P 500 over the past 50 years.
- History20: Choose any starting year from 1928 to 2005 and simulate 20 years of actual historical S&P 500 returns. For example, choosing 1995 uses historical return data from 1995 to 2014.
RRSP Withdrawal Tax Rate: For simplicity, the tax rate on RRSP withdrawals is set at 30%.
Non-Registered Account Tax Rate: The annual tax rate for non-registered investment income is set at 17% as an average rate, not a marginal tax rate.
Inflation Rate: The default annual inflation rate is 2.5%, and it can be adjusted.
RRSP Withdrawal Rate: The default annual RRSP withdrawal percentage is 5%, and it can be adjusted.
Non-Registered Account Return: The default annual return for non-registered accounts is set at 98% of the RRSP account return rate, and it can be adjusted.

How to Use the Adjustable Fields

The yellow fields represent adjustable values.

For example, changing the annual RRSP withdrawal rate from 5% to 0% allows you to compare the outcome of not withdrawing from the RRSP at all.

Changing the withdrawal rate to 8% allows you to test a faster withdrawal strategy, but the tax rate assumption should be reviewed accordingly.

Try the Simulator

Interactive Excel model for educational purposes only.

Important Note

This simulator uses simplified tax assumptions and is intended for education and comparison only. Actual retirement planning should consider personal tax brackets, CPP, OAS, GIS, RRIF minimum withdrawals, non-registered account income type, and future policy changes.

Need Help Building a Retirement Withdrawal Strategy?

If you want to compare RRSP withdrawal strategies, reduce lifetime tax, or better understand how your retirement assets may last, personalized planning can be helpful.

📩 Contact me for a personalized retirement planning discussion.