# Can we really retire next year?



## Itchy54 (Feb 12, 2012)

Ok, here goes...there seems to be lots of bright minds around here....

Hubby is 55 and I will be in a couple of months. I have a small pension that I will start collecting May 01 of this year, in the amount of $241/mth which includes a bridge benefit (after 65 the pension will be $171).
We own our home outright and it is valued at about 450,000. We own both our vehicles, his a used BMW (his toy) and mine a Toyota Rav 4 that is about 8 years old..I think...runs like a charm.

We have no debt.

We have, or will have in a year, $500,000 in RRSP, tax free accounts and cash.

We put our son through university and he has now graduated and left home..

My husband can start his pension unreduced next year--with an annuity and bridge benefit he will get 3600/mth until he is 65...after that I believe (sorry the numbers are at home and I am between labs right now at work) is about $2700/mth

When we are 65 CPP will kick in--he will get $900 and I will get $330 (stay at home mom for a long time)..still undecided about whether or not to take this early--if either gets sick then we will....that is something we need to work on. Looks like OAS may not be available until we are 67....who knows?

we have our spending down to a science and will need about $3100/mth after taxes to cover everything except big ticket travel.

I think we can do this...have him retire next year, but I am also so terrified....what if i did not calculate this right?? I also worry about spending the money we saved...I have been saving for so long that it truly terrifies me to even think of touching it...and I am driving my hubby crazy with that.

Would love your thoughts.....


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## Itchy54 (Feb 12, 2012)

let me add that the $3100 monthly expenses are weighted high...we really do not spend that much but like to err on the side of caution....the two pensions would likely be all we need to spend except for holidays....something we would spend 10 -20 thousand a year on while we are younger....


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## Daniel A. (Mar 20, 2011)

I have far less than you have and retired 2 years ago, I don't have any regret.

The deductions from the pension income is next to nothing, with the RRSP it will give you the chance to move it out of RRSP in a lower tax bracket even if you don't need it.
The first thing I noticed was after working all my life with large deductions in payroll to suddenly be paying almost nothing was huge.
Think about how much money you really have in net pay working.

I see no reason you can't retire if that is what you really want and have other things you would rather do.


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## mind_business (Sep 24, 2011)

There's a few people here who will do up a retirement plan for you. To help them out, they'll need to know if your pensions are indexed or not.

Having said that, I'm quite certain you guys are in a good position to retire early. Even if you pensions are not indexed, they provide the majority of your income requirements for the first 15 to 20 years. During that time, you can mostly leave alone your RRSP and TFSA to earn compound interest.


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## Daniel A. (Mar 20, 2011)

Winter months consider that both of you can go to Los Cabos it is safe there.
I have friends that winter there the cost for everything is 1900.00 per month.
They live well for that amount and are happy to not be in Ontario paying heating bills.

Another fellow out of Alberta goes there retired early his cost 1300.00 per month.


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## Itchy54 (Feb 12, 2012)

Thanks for the replies!! woohoo. Hubby's job is super stressful and he has aged in the past few years....would like to see that stop. Right now both the pensions are indexed , but that can change at any time or so we have been told (bc government). The numbers I gave were for 100% joint life. We will have to buy our own medical and dental as that was removed from his pension last year. I may or may not be able to get a slight discount through my little pension.

If I can I want to continue with my part time job at the university here...but it may be eliminated after this semester. I teach some of the labs and it is a super job that I love so fingers crossed. This income would fund our holidays.

I just really want hubby out of his position and if he really wants to work on his own afterwards will be something to think about as i do believe he will need to do something.

We have spent 3 week sessions in Huatulco Mexico for the past 4 Decembers and know how cheap it is to live there. The dog is the issue but I can see us spending a few months down south after the dog passes. Winter is becoming a pain for both of us.

Thanks again for your comments.


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