FIRE calculator for Canada
Canadian early retirement plans lean on two accounts with very different jobs. The calculator gives you the number; this page explains how most Canadian plans get there.
Open an investment account
We explain exactly what to compare before you open anything - costs, protection and the traps.
TFSA and RRSP do different work
The TFSA grows and withdraws tax-free with no age restriction, which makes it the natural bridge for the years before a traditional retirement. The RRSP gives a deduction now and is taxed on withdrawal, which suits high earners expecting a lower retirement bracket.
Many Canadian FIRE plans fill TFSA room first for flexibility, then use RRSP room to cut current tax, then invest anything left in a taxable account.
Watch the withdrawal rate
Canadian data does not stretch as far back as the US studies behind the 4% rule, and a plan starting in your forties is long. Many Canadian planners work at 3.5% or lower.
At 3.5% rather than 4%, the pot required rises by roughly 14% - a meaningful difference worth seeing before you fix a date.
Frequently asked questions
Is the 4% rule valid in Canada?
It was derived from US history. Canadian returns and inflation differ, and a forty-year retirement is longer than the studies covered, so a lower rate is the cautious choice.
TFSA or RRSP first for FIRE?
TFSA generally offers more flexibility before traditional retirement age. The right split depends on your current and expected future tax brackets.
What about CPP and OAS?
Both start later in life and reduce what your portfolio must cover from that point. They make the later decades easier, not the bridge years.
Do I pay tax on TFSA withdrawals?
No, and withdrawals restore contribution room the following calendar year, which is part of why it suits an early retirement bridge.
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