Question 1

How much do I need to retire in Canada?

Accepted Answer

A common rule is to accumulate 25× your annual expenses (the "4% rule"). Use the Solutech Retirement Planner to model CPP, OAS, and your personal savings rate for a Canadian-specific estimate.

Question 2

What is the OAS clawback threshold in Canada?

Accepted Answer

In 2025 the OAS Recovery Tax kicks in when net income exceeds $93,454. For every dollar above that threshold, 15 cents of OAS is clawed back. The planner models this automatically.

Question 3

When should I start CPP?

Accepted Answer

You can start CPP as early as 60 (with a reduction) or as late as 70 (with an 8.4%/year increase after 65). Delaying is usually advantageous if you expect to live past your mid-70s.

Question 4

When can I claim Social Security in the USA?

Accepted Answer

You can claim Social Security as early as age 62 or as late as age 70. Claiming early reduces your benefit; claiming at Full Retirement Age (66–67 depending on birth year) gives your standard benefit; claiming at 70 maximizes it with an 8% annual increase. The Solutech planner calculates your Primary Insurance Amount and all claiming scenarios.

Question 5

What is the difference between a 401(k) and Roth IRA?

Accepted Answer

A Traditional 401(k) lets you contribute pre-tax dollars and pay taxes in retirement. A Roth IRA lets you contribute after-tax dollars but withdrawals are tax-free. The Solutech planner models both with employer match and Required Minimum Distributions (RMDs) starting at age 73 (SECURE 2.0).

Question 6

How much can I contribute to a 401(k) in 2025?

Accepted Answer

In 2025, you can contribute up to $24,500 to a 401(k) (or $30,500 if age 50+). Your employer may also add matching contributions. The Solutech planner lets you model various contribution rates and employer match scenarios.

Retirement Planning Guides

CPP Calculator Canada

Complete Retirement Planning Guide for Canadians

Social Security & 401(k) Guide

OAS Clawback Explained

RRSP vs TFSA: Which Should You Prioritize?