What is Coast FIRE in Canada?
Coast FIRE in Canada means you've invested enough that, without adding more, your money can grow into what you'll need at retirement once CPP and OAS start paying. After that point your job only has to cover today's bills. This calculator works in Canadian dollars and starts both pensions at 65.
How the calculator works
It's the same engine as our main Coast FIRE calculator, set up for Canada: amounts in Canadian dollars, and CPP and OAS rows already filled in with a start age of 65. Change the amounts to your own estimates and the ages to when you plan to claim.
First it works out your FIRE number, the amount you need invested on the day you stop working. If you retire before 65, your savings pay for everything until the pensions arrive, then only the part CPP and OAS don't cover. The calculator adds up those yearly gaps rather than just dividing your spending by 4%, so a pension that starts years after you retire still lowers the number.
Coast FIRE number = FIRE number ÷ (1 + r) ^ (R − A)r is your yearly return after inflation and fees, R is the age you want to retire, and A is your age today. It's the amount that grows into your FIRE number with nothing added.
Then it looks at the saving you're already doing and finds the earliest age you could stop contributing and still get there. How we calculate has the full method.
Where to get your CPP and OAS numbers
Your CPP depends on how long you worked and how much you earned, so don't guess. My Service Canada Account shows your contribution history and an estimate, and the government's Canadian Retirement Income Calculator combines CPP, OAS and your own savings. Enter the amounts in today's dollars, after the tax you expect to pay on them.
Both pensions are indexed. CPP is adjusted every January to the Consumer Price Index, and OAS is reviewed four times a year. That matches how the calculator treats them: the rows are ticked as rising with inflation, so a figure in today's dollars stays the same in real terms for life.
Three worked examples
All three use a 5% return after inflation, a 4% withdrawal rate and a plan that runs to 95. The first two leave out tax on withdrawals to keep things simple; the third shows what it adds. Amounts are in Canadian dollars.
Example 1: retiring at 60 with CPP and OAS
A 35-year-old in Ontario has $200,000 across an RRSP and a TFSA and adds $15,000 a year. They want to retire at 60 on $55,000 a year. Their CPP estimate is $11,000 a year and they expect $8,000 of OAS, both after tax and both from 65.
| Age today | 35 |
|---|---|
| Invested today | $200,000 |
| Saving per year | $15,000 |
| Retire at | 60 |
| Spending per year | $55,000 |
| CPP | $11,000 a year from 65 |
| OAS | $8,000 a year from 65 |
| FIRE number at 60 | $990,889 |
|---|---|
| Coast FIRE number today | $292,612 |
| Progress toward it | 68.3% |
| Can stop saving at | 43 |
| Calendar year | 2034 |
| Invested at that point | $438,728 |
Without the pensions they'd need 25 times $55,000. CPP and OAS cut that to $990,889, even though the savings carry the full budget from 60 to 64. Eight more years of saving gets them to $438,728 at 43, and from there the money can grow on its own.
Example 2: the same person, taking CPP at 70
Now the same person waits until 70 to take CPP. Each month past 65 adds to the payment, so their estimate at 70 is $15,620 a year. OAS still starts at 65.
| Retire at | 60 |
|---|---|
| Spending per year | $55,000 |
| CPP | $15,620 a year from 70 |
| OAS | $8,000 a year from 65 |
| FIRE number at 60 | $964,301 |
|---|---|
| Coast FIRE number today | $284,761 |
| Can stop saving at | 42 |
| Calendar year | 2033 |
Waiting helps, but less than the bigger CPP payment suggests. Their savings now have to cover five more years without CPP, which eats much of the gain. The FIRE number drops to $964,301 and they can stop saving a year sooner. Delaying is mostly a bet on a long life.
Example 3: starting at 45 and leaving at 55
A 45-year-old has $650,000 saved, mostly in an RRSP, and puts away $20,000 a year. They'd like to retire at 55 on $50,000. RRSP withdrawals are taxed as income, so they set aside 20% of each withdrawal for tax. They expect $9,000 of CPP and $8,000 of OAS from 65.
| Age today | 45 |
|---|---|
| Invested today | $650,000 |
| Saving per year | $20,000 |
| Retire at | 55 |
| Spending per year | $50,000 |
| Tax on withdrawals | 20% |
| CPP | $9,000 a year from 65 |
| OAS | $8,000 a year from 65 |
| FIRE number at 55 | $1,219,746 |
|---|---|
| Coast FIRE number today | $748,818 |
| Progress toward it | 86.8% |
| Can stop saving at | 51 |
| Calendar year | 2032 |
Ten years of withdrawals before any pension, plus tax on each one, push the FIRE number to $1,219,746. They're at 86.8% of their Coast number already, and six more years of saving closes the gap. If more of their savings sat in a TFSA, less of each withdrawal would go to tax.
CPP and OAS: when to start
CPP can start any time from 60 to 70. Taking it early cuts it by 0.6% for each month before 65, so starting at 60 means 36% less for life. Waiting adds 0.7% a month, up to 42% more at 70. The calculator doesn't apply these adjustments for you. Look up the amount for the age you have in mind and enter that with the matching start age.
OAS starts at 65 and depends on how long you've lived in Canada as an adult, not on your work history. You need at least 10 years of residence after 18 to get any, and you get a partial pension if you haven't been here long enough for the full one. You can defer it to 70 for 0.6% more per month, up to 36%.
If your income in retirement is high, some or all of your OAS is clawed back through the recovery tax: 15% of your net income above a threshold that changes every year. For most Coast FIRE plans this doesn't bite, but a large RRSP drawn down late can push you over. In that case, enter a lower OAS figure.
Quebec workers get the Quebec Pension Plan instead of CPP. The rules differ in places, so take your estimate from Retraite Québec and put it in the CPP row.
RRSP, TFSA and getting at your money
Unlike the US, Canada has no general age limit on reaching your own savings. You can take money out of a regular RRSP at any age, but each withdrawal is taxable income and the bank holds back tax when it pays you. Locked-in plans from a former employer pension follow stricter rules. Your RRSP also has to mature by the end of the year you turn 71, which usually means converting it to a RRIF. From the year after that, a RRIF has to pay you a minimum amount every year.
TFSA withdrawals are tax-free at any time, and neither the growth nor the withdrawals count against income-tested benefits like the Guaranteed Income Supplement. That makes the TFSA a useful bridge for an early retirement: it lets you keep your taxable income low in the years before CPP and OAS.
The calculator treats everything you've invested as one pot with one tax rate on withdrawals. If most of your money is in an RRSP, use a rate close to what you expect to pay. If most of it is in a TFSA, leave the rate at zero or near it.
Why Canadian calculators give different answers
- Pensions. Many Coast FIRE tools are built for the US and ignore CPP and OAS, or let you enter only one income. Two pensions can easily cover a third of a modest budget, so leaving them out makes the target much bigger.
- Return. Some tools use a return before inflation, like 7%, and others use one after inflation, like 5%. This one asks for the real return by default. You can switch the field to nominal and it converts for you.
- Tax. A flat rate on all withdrawals is a simplification. Real tax depends on how you split money between your RRSP, TFSA and non-registered accounts, and whether you split pension income with a spouse.
- Withdrawal rate. The 4% rule comes from studies of 30-year retirements. Someone leaving work at 50 may need their money to last 45 years, and many tools quietly use 3.5% for them. That alone raises the target by about 14%.
What this calculator doesn't do
- It doesn't calculate CPP or OAS for you. Enter your own estimates after tax.
- It doesn't model the OAS recovery tax, the GIS or RRIF minimum withdrawals.
- It doesn't track your RRSP and TFSA separately or work out provincial tax.
- The market history check uses US stock and bond returns and US inflation. It's a rough guide, not a record of how Canadian investments did.
Common questions
Is Coast FIRE realistic in Canada?
Yes, and CPP and OAS make it easier than in many countries. Between them they can replace a large part of a modest budget from 65, so your savings mainly have to cover the years before that.
Should I enter CPP and OAS before or after tax?
After tax, in today's dollars. Both are taxable income. If you're not sure what your rate will be, take 10% to 20% off and see how much the result moves.
Does this include the Canada Child Benefit?
Not directly. The CCB is paid while you're raising children, which is usually during your saving years, so it shows up in how much you can put away each year. Because it's based on family net income, cutting back to part-time work in a coast phase can raise it.
Can I retire before 60 if CPP starts at 60 at the earliest?
Yes. Your savings cover the gap until your pensions start. Set your retirement age, keep CPP and OAS at the ages you'll claim them, and the calculator adds up the years in between.
What if I live in Quebec?
Enter your Quebec Pension Plan estimate from Retraite Québec in the CPP row. OAS is the same across the country.
Can I plan for a couple?
Yes. Add a partner in the calculator, enter their age, and give each of you your own CPP and OAS rows. You can also see the UK version if you're comparing where to retire.
Sources
- Government of Canada. When to start your CPP retirement pension. www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-benefit/when-start.html
- Government of Canada. Canada Pension Plan amounts and the Consumer Price Index. www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-benefit/after-apply/consumer-price-index.html
- Government of Canada. Old Age Security. www.canada.ca/en/services/benefits/publicpensions/old-age-security.html
- Government of Canada. When to start your Old Age Security pension. www.canada.ca/en/services/benefits/publicpensions/old-age-security/when-start.html
- Government of Canada. Old Age Security pension recovery tax. www.canada.ca/en/services/benefits/publicpensions/old-age-security/recovery-tax.html
- Government of Canada. Canadian Retirement Income Calculator. www.canada.ca/en/services/benefits/publicpensions/cpp/retirement-income-calculator.html
- Canada Revenue Agency. Information Circular IC72-22, Registered Retirement Savings Plans. www.canada.ca/en/revenue-agency/services/forms-publications/publications/ic72-22/registered-retirement-savings-plans.html
- Canada Revenue Agency. What is a TFSA. www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/what.html
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