Tools

Transfer value vs. pension (RREGOP)

Compare a pension plan transfer value to the projected pension, including indexation and QPP coordination.

Your parameters

Plan

Sex

Pension starting age60 yrsAnnual pension at the start of retirement

Transfer value

Hypothetical return on the transferred value4.00 %Hypothetical inflation (CPI)2.1 %

Target age for the analysis (required return)95 yrs

RREGOP

Years of service before July 1982

Years of service (July 1982 to 1999)

Years of service since 2000

Coordinated years of service (max. 35)

Average MPE of the 5 years preceding retirement

40 000 $

Pension at the start

17 150 $

Coordination reduction (age 65)

94 yrs

Age the transferred capital is depleted

4.22 %

Required return to age 95

Transferred value balance (invested) Cumulative pension received

Age	Probability of survival	Pension (indexed, net)	Transferred capital balance
60	100.0 %	40 000 $	582 400 $
61	99.4 %	40 300 $	563 784 $
62	98.7 %	40 603 $	544 108 $
63	97.9 %	40 909 $	523 327 $
64	97.1 %	41 219 $	501 392 $
65	96.1 %	24 382 $	496 090 $
66	95.1 %	24 698 $	490 248 $
67	93.9 %	25 017 $	483 840 $
68	92.7 %	25 340 $	476 840 $
69	91.3 %	25 666 $	469 221 $
70	89.8 %	25 996 $	460 954 $
71	88.1 %	26 329 $	452 010 $
72	86.3 %	26 665 $	442 359 $
73	84.3 %	27 005 $	431 967 $
74	82.1 %	27 349 $	420 803 $
75	79.8 %	27 696 $	408 831 $
76	77.3 %	28 047 $	396 015 $
77	74.5 %	28 402 $	382 318 $
78	71.6 %	28 760 $	367 700 $
79	68.4 %	29 122 $	352 121 $
80	65.0 %	29 488 $	335 539 $
81	61.5 %	29 858 $	317 908 $
82	57.7 %	30 231 $	299 184 $
83	53.8 %	30 609 $	279 318 $
84	49.7 %	30 990 $	258 261 $
85	45.5 %	31 376 $	235 961 $
86	41.2 %	31 765 $	212 364 $
87	36.9 %	32 159 $	187 413 $
88	32.6 %	32 557 $	161 051 $
89	28.3 %	32 958 $	133 216 $
90	24.2 %	33 365 $	103 845 $
91	20.3 %	33 775 $	72 873 $
92	16.6 %	34 190 $	40 231 $
93	13.3 %	34 609 $	5 847 $
94	10.3 %	35 032 $	0 $
95	7.7 %	35 460 $	0 $
96	5.6 %	35 893 $	0 $
97	3.8 %	36 330 $	0 $
98	2.5 %	36 771 $	0 $
99	1.5 %	37 217 $	0 $
100	0.9 %	37 668 $	0 $

“This calculator compares, for informational purposes only, a transfer value you enter (from your official statement — this tool does not recompute the actual actuarial value, which requires the mortality tables and discount rates prescribed by the Canadian Institute of Actuaries, updated quarterly) to the plan’s projected pension, indexed according to the applicable rules. The simulation invests the transferred value at the hypothetical rate entered and withdraws the exact pension amount each year, to illustrate whether — and until what age — it would be sufficient to replicate it. Unlike a defined-benefit pension, which is paid for life, invested capital can run out. Hypothetical performance does not guarantee any future result. The probability of reaching each age is estimated from the Canadian Institute of Actuaries’ CPM2014 mortality table (Canadian pensioners), which does not distinguish smokers from non-smokers. This result does not constitute personalized financial, actuarial, or retirement planning advice — consult your advisor and, for a transfer decision, an actuary or Retraite Québec.”

Calculation assumptions

The transfer value is entered directly by the user (official statement from the paying organization); it is not recomputed by this calculator.
RREGOP and RRPE modes — Retraite Québec indexation rules (identical for both plans per their respective official pages): service before July 1, 1982, full CPI; service from July 1, 1982 to December 31, 1999, CPI minus 3% (floor 0%); service since January 1, 2000, the more advantageous of 50% of CPI or CPI minus 3%. The starting pension is split across these three periods in proportion to the years of service entered.
RREGOP and RRPE modes — RRQ coordination: a permanent, automatic reduction at age 65 equal to 0.7% × coordinated years of service (max. 35) × a reference amount from the 5 years preceding retirement (average MPE for RREGOP; the lesser of average MPE or average pensionable salary for RRPE); applies whether or not QPP is claimed at that age.
RRPE mode — specific caution: the RRPE was affected by legislative changes (Bill 126, 2017), including a temporary indexation freeze (2018-2023) for pensions already in payment; the sources consulted do not fully agree on the indexation rate currently applicable to service before 1982 (100% or 50% of CPI, depending on the source). This calculator uses the formula currently published on Retraite Québec’s official page (full CPI); confirm this point directly with Retraite Québec or an actuary before relying on it for an actual decision.
“Other plan” mode: indexation at a flat rate entered by the user, with optional coordination as a fixed annual reduction from a chosen age — a generic simplification to illustrate another defined-benefit plan.
Hypothetical inflation (CPI) is assumed constant for the entire projected period.
The simulation withdraws, each year, from the transferred capital invested at the hypothetical rate entered, an amount equal to that year’s pension; the balance is floored at $0 if it would go negative (capital cannot produce a negative balance), which marks the depletion age.
The required return is the constant rate that would exactly deplete the transferred capital at the chosen target age, computed by successive approximation (bisection).
The survival probability uses the Canadian Institute of Actuaries’ CPM2014 mortality table (Canadian pensioners), adjusted by log-linear (Gompertz) regression; it does not distinguish smokers from non-smokers.
No tax is taken into account (a pension and withdrawals from a registered account are generally taxable as ordinary income). This result does not constitute personalized financial, actuarial, or retirement planning advice.

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Transfer value vs. pension (RREGOP)

Transfer value vs. projected pension

Your parameters

Calculation assumptions

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