FAQ: What is the Difference Between Plan Funded and Success Rate

Plan Funded Amount

"Plan Funded" measures whether your income and assets are enough to meet your lifetime spending goals using the projected rate of return in your Foundation > Investment Plan.

• Over 100%: You have more than enough.
• Exactly 100%: You can just meet your needs.
• Under 100%: You may face shortfalls, need to use debt, or access home equity.

What this amount doesn't capture is what would happen if you don't reach those average rates. Even if you're 100% funded, risks like poor investment returns or high inflation could still cause issues. That's why checking your Success Rate is also important.

Success Rate

"Success Rate" looks at the percentage chance that your plan will succeed — meaning you won’t run out of money — even if investment returns or inflation vary from expectations.

The Success Rate Analysis employs a deterministic "historical casting" approach, using actual historical stock returns, bond returns, and inflation rates to simulate retirement outcomes. You can see a more detailed description of how it works here.

Assets Included:

In both cases, this calculation is only looking at financial assets (excluding amounts in your Savings or TFSA Savings accounts).

Neither the Plan Funded amount or the Success Rate takes Real Estate into account. They both assume these will not be sold, unless you have already factored a sale into your plan.