Back to Learn Sensitivity & Risk

Return sensitivity, in plain terms

Your plan's sustainability hinges on the investment return you actually earn. Testing a range of returns tells you how much margin you really have.

Why returns matter so much

•Your accounts compound for 30+ years — a 1% difference in return swings the ending balance by tens of thousands.
•Lower returns mean accounts deplete earlier; higher returns can make a tight plan comfortable.

What the sensitivity panel does

•It re-runs your plan with investment returns shifted by −3% to +3% from your base assumption.
•For each scenario it shows net annual income, lifetime tax, and whether the plan survives to your end age.
•The "Account return" column covers all investment accounts (RRSP, TFSA, non-registered, LIF) at once.

How to read it

•If the plan survives even at −3%, you have a comfortable margin of safety.
•If it only survives at +3%, you're relying on optimistic returns — consider lower spending or a later end age.
•Use the spread to decide whether to spend more, work longer, or hold a bigger cash buffer.

Stress-test your plan

Open the Sensitivity panel in the Sequencer to see all five return scenarios at once.