How Priya Discovered She Was $800/Month Short of Her Retirement Goal — And Fixed It in 3 Steps
Written by
Priya SharmaMBA, Financial Educator
Priya is an MBA graduate and financial educator based in Calgary with a passion for helping Canadian families build wealth through disciplined saving and smart investing. She specializes in mortgage planning, real estate analysis, retirement projections, and first-home buyer strategies.
AI Generated by TrackMoola
The Comfortable Assumption
Priya, 46, is an Ontario high school teacher earning $85,000 a year. She had a defined benefit pension from the Ontario Teachers' Pension Plan, but she also had an RRSP and TFSA she'd been contributing to sporadically for 15 years. "I assumed I'd be fine," she told us. "Teachers get good pensions. I figured the rest would sort itself out."
What she hadn't done was sit down and actually run the numbers — until she used TrackMoola's Retirement Savings Calculator.
The Reality Check
Priya entered her details: age 46, income $85,000, target retirement at 60, RRSP balance $120,000, TFSA balance $40,000, and monthly contribution of $600 across both accounts. She left the expected annual return at the default 6% and the monthly retirement expenses at the 70% income replacement benchmark — about $4,958/month.
The result shocked her.
Her projected nest egg at 60 was $582,000. That sounds like a lot — until you look at what it actually generates. At the 4% safe withdrawal rule, that's just $1,940/month from savings. CPP at 60 would be reduced by 36% for early claiming: just $634/month. And OAS? Not available until 65 — so zero at her target retirement age.
Total projected income: $2,574/month. Target: $4,958/month. Gap: $2,384/month.
Wait — the headline says $800. That's because Priya's DB pension wasn't captured in the calculator (it only models personal savings and government benefits). When she added her estimated DB pension of roughly $1,600/month, her real gap narrowed to $784/month. Still meaningful. Still alarming.
Step 1: Understand the Gap Drivers
The calculator's income sources table broke it down clearly. The problem wasn't just contributions — it was the early retirement penalty on CPP and the zero OAS for five years. Retiring at 60 instead of 65 cost her an estimated $380/month in government benefits alone.
The RRSP Room Calculator (try it here) showed she had $22,000 in unused contribution room she could use if she found extra cash. The Account Type Comparison tool confirmed that at her income level, RRSP contributions still saved her approximately 43.41 cents on every dollar in Ontario — a compelling lever.
Step 2: Increase Monthly Contributions
The calculator's "Gap Resolution" suggestion showed that adding $340/month to her RRSP would, combined with the compounding over 14 years, close most of the savings-side gap. Her RRSP refund (at 43% marginal rate) on that $340/month contribution would be roughly $1,756/year — money she reinvested each March.
She set up an automatic $340/month top-up, bringing her total monthly retirement savings to $940. "It stung a bit at first, but the tax refund essentially subsidized it," she said.
Step 3: Delay CPP to 68
The most powerful lever was CPP timing. The calculator showed that each month she delayed CPP past 65 added 0.7% to her benefit — up to age 70. By planning to delay CPP to 68 (three years after 65), she'd increase her CPP from the age-65 base by 25.2%.
That brought her estimated CPP at 68 to approximately $1,100/month instead of $880/month — a $220/month improvement, every month, for life, fully indexed to inflation.
The Outcome
By age 47, Priya had re-run the calculator with the updated inputs: $940/month contribution, retirement still at 60, but with a plan to bridge with savings and DB pension from 60–68 before claiming CPP late. Her revised projection showed the gap had narrowed from $784 to approximately $120/month — within range of small adjustments like a part-time teaching role in her early retirement years.
"I'm not stressed anymore," Priya says. "I have a plan. I know exactly what levers I'm pulling and why. The calculator made it real."
Your Retirement Reality Check
Whether you're 35 or 55, the best time to know is now. Use the Retirement Savings Calculator to see your projected nest egg, CPP/OAS estimates, and whether you're on track. Then read the step-by-step guide to understand every input and output.
Need to maximize your RRSP room first? Use the RRSP Room Calculator. Not sure whether RRSP or TFSA is better for you? The Account Type Comparison will tell you in 60 seconds.
This article is for educational purposes only. It does not constitute financial advice. Consult a licensed financial advisor or retirement specialist for guidance specific to your situation.