How do I update my current income?
You can change this amount in the "Plan” section of your account. You can update your current income by clicking “Edit” at the top right of the screen or on the “My Projected Monthly Retirement Income” chart. Because your income is used to estimate how much income you will need in retirement, your target retirement income will be recalculated. Other key elements of your retirement plan may also change, such as your government benefits and RRSP contribution room.
Impact on government benefits
A higher income may reduce how much you receive in Old Age Security (OAS) or Guaranteed Income Supplement (GIS) because these benefits are clawed back based on your income level in retirement. If your income is lower, these government benefits may increase. Please note that you will see no change to your government benefits if you have previously customized these amounts.
Impact on RRSP contribution room
Lowering your income may affect your RRSP contribution room, so you want to make sure you are not over-contributing to your RRSP. General contribution limits are set by the government and can be found here.
Impact on monthly contribution rate and auto-escalation schedule
If you are contributing from your bank account, your suggested monthly contribution rate and your auto-escalation schedule may change based on the update to your income. You can view the new suggested amount by clicking “Edit” next to your current contributions and “back to suggested amount” and enter the contribution rate you would like.