| CPP | Canada Pension Plan — a contributory earnings-related pension benefit administered by the federal government. |
| OAS | Old Age Security — a universal monthly pension available to Canadians aged 65 and over, subject to a clawback at higher incomes. |
| GIS | Guaranteed Income Supplement — a monthly non-taxable benefit for low-income OAS recipients. |
| RRSP | Registered Retirement Savings Plan — a tax-deferred savings account; contributions reduce taxable income and withdrawals are taxed as income. |
| RRIF | Registered Retirement Income Fund — an RRSP must be converted to a RRIF by age 71, though it may be converted earlier; minimum annual withdrawals are mandatory from the year after conversion. |
| TFSA | Tax-Free Savings Account — contributions are not tax-deductible, but all growth and withdrawals are tax-free. |
| Net Worth | The total value of all assets (investments, real estate equity, registered accounts) minus any outstanding liabilities. |
| Pension Income Splitting | A Canadian tax rule that allows eligible pension income to be allocated to a lower-income spouse, reducing the couple’s combined tax bill. |
| Monte Carlo Simulation | A statistical method that runs a financial plan thousands of times with randomized variables to estimate the probability of success. |
| Success Rate | The percentage of simulated scenarios in which the retirement plan did not fail (either net worth stayed positive or income met the budget, depending on the chosen definition). |
| Standard Deviation | A measure of variability or uncertainty. In the stress test, it controls how widely investment returns are spread across simulated scenarios. |
| Deterministic Projection | A single projection using fixed, expected-value rates — what the plan looks like if everything goes exactly as assumed, with no randomness. |
| BPA | Basic Personal Amount — a tax credit that reduces federal (and most provincial) tax on the first portion of income. |
| Age Amount | A federal and provincial tax credit available to Canadians aged 65 and over, subject to a clawback at higher incomes. |
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