Run MyPRIM now to see what your retirement looks like
What is My Personal Retirement Index Measure? Have you ever wondered how prepared you are for retirement?
- How much income will you get?
- How much actual cash will you receive after taxes?
- How will a change in lifestyle effect your expenses?
- Do I need the same amount of money that I am earning right now?
With My Personal Retirement Index Measure (MyPRIM) you can see a clear picture of how your retirement is shaping up and how it compares to your current lifestyle.
MyPRIM is unique number generated just for you which is best thought of like a percentage. A MyPRIM of 100 (or higher) means your after-tax retirement income is the same (or more) than your net pre-retirement income.
You want to aim for as high a number as possible; however, you do not need a MyPRIM of 100 to have a great retirement life.
How does MyPRIM work?Firstly, you will input a variety of information about your current financial picture. We will gather information on your current pension plan (if you have one), retirement savings plan, TFSA balances, as well as some basic personal information.
The more accurate you are with the information, the more accurate your retirement picture will be.
Once we have this information, we will use our Actuarial calculations to determine what all of this looks like for your retirement. We assume, if you are in a pension plan, that you will continue full-time service until you retire.
You will be able to choose when to retire. This lets you see how retiring early may (or may not) effect you.
You will also be shown where your retirement income will come from (Government pensions, RRSPs, pension, etc.). This is key to knowing if you need to make any changes to a specific income stream.
Why does MyPRIM change after Age 65?Your MyPRIM will be different before age 65 and after 65 if you are looking at retirement before age 65.
This is due to the report assuming you will take both government pensions (CPP and OAS) at age 65, increasing your retirement income.
If you are in a Public Pension Plan, you may also lose your bridge pension which will decrease your retirement income.
When you run the report, you will see both MyPRIM's so you can see how your income will change over time.
What if MyPRIM is not as high as I want?When you run MyPRIM, you'll be given tips to increasing MyPRIM. These tips include looking at your yearly savings, investment strategies and financial institutions.
You should also consider that just because MyPRIM is under 100, doesn't mean your retirement will be limited. Your expenses will most likely decrease close to retirement, so you may not need all of your income as you do now.
What if I am in a Pension Plan?With a Defined Benefit (DB) pension, your retirement income is predetermined. The only change is as you increase your service, the amount increases by that standard rate. This makes pension income easier to predict. Learn more about DB plans here.
With a Defined Contribution (DC) pension, your retirement income is not easily determined. Using a report such as MyPRIM, you will be able to see what your retirement income will look like.
If you are in a Public Pension Plan, your pension income will decrease at age 65. This is because of a bridge pension that you are entitled to until age 65. This bridge is meant to mimic the government pensions that aren't available until age 60 or 65 so that your retirement income is more consistent if you retire early.
What if I am not in a Pension Plan?If you aren't in a pension plan, your main retirement income will come from RRSPs or TFSAs.
Learn more about RRSPs and TFSAs here.
This income is hard to determine without using actuarial factors and financial models. The best way to determine your retirement income from an RRSP or TFSA is using MyPRIM.