Planworth's Financial Calculators provide quick estimates to help advisors explore different planning strategies, assess potential shortfalls, and support client conversations.

Whether you're meeting with a prospective client, evaluating a specific planning question, or comparing different strategies, these calculators allow you to generate insights using information entered directly into each tool. Unlike Financial Insights, the calculators operate independently of a client's financial plan. They do not retrieve information from the client's Evaluation or update any existing scenarios.

Each calculator also provides the option to print or save the results as a PDF.

Planworth offers six financial calculators, each designed to address a specific planning question.

The RRIF Withdrawal Strategy calculator helps advisors project how a client's RRSP or RRIF assets may be withdrawn over their lifetime, including the associated income taxes and remaining registered assets.

Advisors can use this calculator to explore the impact of different RRIF conversion ages, investment returns, and other taxable income on future withdrawals. The results illustrate annual withdrawals, after-tax income, remaining registered assets, and the estimated income tax liability on those assets at death.

This calculator is particularly useful for discussing registered asset drawdown strategies and the potential estate tax implications of retaining significant RRSP or RRIF balances.

Note: The calculator focuses on a single RRSP/RRIF balance and does not model the client's broader spending needs or complete financial plan.

The Income Tax Calculator provides a quick estimate of an individual's income taxes for a selected tax year and province.

Advisors can use it to compare the tax implications of different income sources, including employment income, interest, eligible and ineligible dividends, and capital gains. It can also help illustrate how RRSP contributions and other tax deductions affect taxable income and the resulting tax liability. The results provide a breakdown of federal and provincial income taxes, applicable credits, and estimated after-tax income.

This calculator is particularly useful when evaluating income composition or exploring the potential tax savings associated with different deductions.

Note: The calculator provides a single-year tax estimate for one individual rather than a multi-year household tax projection.

The Retirement Gap Calculator helps advisors quickly assess whether a client's projected income and savings may be sufficient to support their retirement spending goals. It is particularly useful during initial client meetings or preliminary retirement discussions when a complete financial plan has not yet been created.

Advisors can explore how changes to retirement age, spending goals, investment returns, and government benefit commencement ages may affect retirement readiness. The results provide insights into retirement funding, sustainable spending, required investment returns, and projected cash flow and net worth.

The calculator supports both individuals and couples, including clients who are already retired.

Retirement Gap vs. Retirement Goal in Financial Insights

The Retirement Gap Calculator provides a preliminary retirement assessment using manually entered information. The Retirement Goal in Financial Insights evaluates retirement readiness within the context of a client's broader financial plan, including the assets, income, expenses, and assumptions already modelled in the scenario.

Below is an example of the results of the Retirement Gap analysis:

The Life Insurance Needs calculator helps advisors estimate whether a client's existing life insurance coverage is sufficient to meet their family's financial needs.

It uses the DIME approach, which considers four key areas:

Advisors can compare these estimated needs against existing term and permanent life insurance coverage to identify potential shortfalls. For couples, the calculator can assess each partner's insurance needs separately.

This calculator is particularly useful for preliminary insurance reviews and identifying potential coverage gaps before conducting a more comprehensive insurance analysis.

Note: The calculation focuses on the DIME approach and does not incorporate other family assets, survivor benefits, or investment growth.

Below is an example of the results of the Life Insurance Needs analysis:

The CPP/OAS Breakeven calculator helps advisors compare different commencement ages for Canada Pension Plan (CPP) and Old Age Security (OAS) benefits. It illustrates how starting benefits earlier or delaying them affects cumulative government benefits over time.

Advisors can use the calculator to identify the breakeven age at which delaying benefits results in greater cumulative payments compared with an earlier commencement age. Results can be viewed for CPP, OAS, or the combined benefits, making it useful for illustrating the trade-off between receiving benefits sooner and receiving higher payments later.

CPP/OAS Breakeven vs. CPP/OAS Optimizer in Financial Insights

The CPP/OAS Breakeven calculator compares cumulative gross benefits without accounting for income taxes or OAS recovery tax.

The CPP/OAS Optimizer in Financial Insights provides a more comprehensive comparison by evaluating cumulative after-tax income under different CPP and OAS commencement combinations. The breakeven calculator is therefore useful for an initial timing discussion, while the optimizer can support a more detailed assessment within a client's financial plan.

Below is an example of the results of the CPP/OAS Breakeven analysis:

The Estate Leakage calculator helps advisors estimate how much of a client's estate may be reduced by terminal income taxes, probate fees, and other estate-related expenses before being passed on to beneficiaries.

Advisors can use this calculator to explore the potential impact of different asset types, beneficiary designations, spousal rollover assumptions, and provincial probate rules on the estate's overall value. The results provide a breakdown of estimated estate expenses and the remaining estate value available to beneficiaries. For couples, the calculator also provides individual and joint estate results.

This calculator is particularly useful for identifying potential estate planning concerns and illustrating how taxes and other expenses may affect the wealth ultimately transferred to beneficiaries.

Below is an example of the results of the Estate Leakage analysis:

While the Financial Calculators provide useful planning insights, there are a few important distinctions to keep in mind:

For more detailed financial planning, including multi-year cash flow projections, tax planning, and scenario comparisons, use Financial Insights to evaluate how different strategies affect the client's overall financial position.