# RPP paid up ... what would you do?



## Guest (Oct 11, 2010)

In April 2011 my RPP is paid up ... I could walk away with a $70K pension ... my expenses inc income tax are about $37K per year leaving about $38K/yr savings ... or, because I'm liking my work, I could stay on. With RPP paid up, the req'd contribution is about $1K/year and so on ,,, short story ,,, if I stay on, my savings would be about $55K/yr ,,, so I'd be working for about $18K/yr. I'm looking for ideas ... would you work for that $18K? Or what would you do ... for those that might ask, I own my home I have no debt ... thanks in advance.


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## fraser (May 15, 2010)

If it is possible, I would try to find another job that I like and has similar pay/benefits. Then take your pension and collect both salary and pension.


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## the-royal-mail (Dec 11, 2009)

If you don't need $38K of the money each year, why would you stay at work and have to fight rush hour traffic and attend boring meetings? $38K is a LOT and you'll need to figure out a strategy to properly handle that money. Working will just mean you'll have more un-needed extra money.

Maybe consider world cruising and travelling for the next 20 yrs? Lots of retirees do this.

Need to figure out how to occupy your days.


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## Square Root (Jan 30, 2010)

Likeable jobs are hard to come by. Why would't you just stay and save more money. Though this does raise the question of whether you would want to raise your expenditure level in future. If not you better quit right away else the money will just pile up. Can you start your pension now? Is it indexed? You didn't give us enough information for us to be of much help.


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## GeniusBoy27 (Jun 11, 2010)

I'd go and volunteer and do things around the world. It's an amazing place. Work for something like Canadian Executive Services Organization, where they pay for your travel, room and board, and you volunteer your time helping the less fortunate in the world.

It's immensely rewarding, fun and challenging.


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## Guest (Oct 12, 2010)

Hello royal-mail ... I had thought I'd spend a year or two taking it easy while refurbishing the old house for future sale ... I like doing that kind of work ... however it now looks like all the work would be in vain ... when the old house is put up for sale it will be demolished to put up condos ... so much for that idea ... but adding a few inexpensive features is an idea ... hmmm. Additional detail, I'm married, my wife also likes her work, she'll be working I'm guessing at least another 5-8 years so travelling for any extended period is not an option ... I'm finding even 2 weeks away is a long time these days. About that commute ... it's about 10 minutes, no traffic, parking ...


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## the-royal-mail (Dec 11, 2009)

I see. What are you considering for yourself? What sorts of things do you have in mind? 5-8 years is a bit of time, would be nice to do something else for that time.


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## Guest (Oct 12, 2010)

Well ... those are the questions I'm asking myself and so am posting looking for ideas ... as mentioned, I'm good working until I come up with an alternative ... so, what would others do is the question ... work for that extra $18K savings/yr? Contribute as a volunteer? A full time 2nd career plus pension?


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## the-royal-mail (Dec 11, 2009)

Hopefully there are some others who are reading this and closer to your situation and can offer some meaningful feedback. About the only other thing I can think of is to perhaps simply keep working (if you can/want to) in your current job until your wife retires. If you're ok with that then you'll just have to figure out all the finances, penalties etc.

For me, I'm not sure I would want the hassle of going through job interviews trying to find another career type job. Volunteering is tough too, because you would need to find something that suits you, has the right balance of hours etc. That isn't as easy as one might think.

Sorry I'm not more helpful but hopefully others can offer additional comments. I would be interested in MG's comments on this one. Anyone else?


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## square one (Jan 19, 2010)

I would take the pension, and look for a part-time job so that I could have more time to exercise, read, maybe volunteer. Of course the part-time job would need to be something I enjoy. I would try to use the part-time income for expenses and save the pension so that when my spouse retires we could travel alot. Oh yeah, and I would encourage my spouse to take as much vacation time as possible so we could go away for a few weeks a year...life often throws curveballs so make sure to do something you enjoy right away when you can!

This is the plan for my husband and I when we approach retirement. He will be able to collect his DB pension 30 months before I will get mine.


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## Guest (Oct 12, 2010)

Hi square one ... combining your thoughts on a part-time job and royal mails thoughts on the hassle of job interviews, I'll just add ... I was discussing part time work on retirement with a collegue a few years back ... we looked at each other and had the same epiphamy ... why look for part time when we like what we are doing, we're good at it and so we're efficient which leaves time for studying/learning, benefits include health, dental, 30 days vacation, sick leave, flexible hours, business travel now and then ... whereas contracting as some of my buddies are doing is taking a lot more hours, a lot more work than they thought it would ... just another perspective others in my situation might consider. I understand what you say about curve balls ... my spouse is a teacher which doesn't help for spontaneous seat sales type get aways ... an inconvenience for sure ... so we take mini-vacations, weekends off, that sort of thing.


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## Square Root (Jan 30, 2010)

I have been retired for 4 years (wife 8years) 60 years old now (wife 53) We are having a great time. Haven't started the big pension yet so 
Living off dividends and other deferred incentive comp pay outs. We have really improved our fitness levels, taken up new hobbies (downhill skiing and biking), travel extensively, helping out with aged parents. Having said that, if you aren't anxious to retire-don't. I was tired of working and really ready to retire. I can't emphasize how important it is to have a job you enjoy. I would keep it as long as I could if I were you. Also, once retired you could always use the extra money. There are plenty of fun ways to spend it (or give it away).


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## Guest (Oct 12, 2010)

Hi Square Root ... Interestingly, about 8 years ago I'd had it with working and considered living off or rather burning up my RSP and other investments to when the pension kicked in at 65 ... too late now 

To sum up ... thanks everyone ... I'm thinking I'll continue working, come up with some additional leisure type pursuits to fill the evenings, weekends. The latest addition was a hot tub down in the exercise room ... keep it at 90F ... nice cool down after a few miles on the treadmill ... after a day at the office


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## the-royal-mail (Dec 11, 2009)

Glad you're getting some feedback, rikk.

Prhaps also consider an indoor hobby like model building? If you like to research the real thing, get photos and information, then try to replicate starting from kits. I'm thinking trucks, planes, trains, automobiles. Just another idea to keep your mind busy. You'll need to spend some $ on tools and such but that won't cost much compared to what you have available.


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## MoneyGal (Apr 24, 2009)

rikk said:


> The latest addition was a hot tub down in the exercise room ... keep it at 90F ... nice cool down after a few miles on the treadmill ...


Ai yi yi! How is 90F a cooldown?


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## OhGreatGuru (May 24, 2009)

rikk said:


> In April 2011 my RPP is paid up ... I could walk away with a $70K pension ... my expenses inc income tax are about $37K per year leaving about $38K/yr savings ... or, because I'm liking my work, I could stay on. With RPP paid up, the req'd contribution is about $1K/year and so on ,,, short story ,,, if I stay on, my savings would be about $55K/yr ,,, so I'd be working for about $18K/yr. I'm looking for ideas ... would you work for that $18K? Or what would you do ... for those that might ask, I own my home I have no debt ... thanks in advance.


a) Money isn't everything. If you enjoy your work, think carefully about retiring without having some definite ideas about what you would like to do instead.
b) Does your pension benefit increase in value if you defer it?
c) If you can no longer contribute significantly to your RPP, are you instead earning significant RRSP room if you keep working?


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## Guest (Oct 12, 2010)

Hi guru

a) Exactly ... that was the question ... is that extra $18K/yr worth working for vs what to do instead
b) Calculated as about ~$2K more per year if I work another 2 years ... which is an excellent return on that $1K contribution/yr or $2K investment. Pension is 70% of best 5 years and since salaries keep going up ... well, that's tbd next contract. Others argue I'm losing the pension indexing which is what ... 0.5%? And since RPP is blended with CPP, and CPP reduction is calculated at age 65 I'd get a few more dollars that way ... but to be honest, these calculations are imo trivial ... I'll likely not stay with my current position for more than another 2-3 years past RPP paid up.
c) Yes, but mainly because my rsp is self directed, not so much for the tax deferral ... when oil gets back down to $70 or possibly less, it's SU again, maybe this time long term ... although it's certainly been an excellent trading equity ... buy at $30, sell at $34, buy at $32, sell at $34


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## GeniusBoy27 (Jun 11, 2010)

I do what I love to do, so I wouldn't ever think of retiring to be honest.


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## George (Apr 3, 2009)

I haven't seen this suggested yet, so I'll throw it in as a possibility. If your employer is willing to go for it, why not ask to reduce your hours and work part-time? If you like the job that'd let you keep doing it, but give you an opportunity to transition into other pursuits.

My employer has something called "pre-retirement transition leave" that allows somebody to drop down to 60% of full-time (which could be 3 days per week, or 5 days/week with shorter hours, or some other arrangement), for up to two years prior to full retirement. If your employer has something similar, or is willing to offer something similar, it might be worth asking for.


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## jamiechese (Jul 13, 2010)

I am not sure what kind of hobbies you have but have you ever considered saving up for a sailboat (you go powerboat I will find you!). Yes, boating does cost a bit of money but the question you have to ask yourself would you like to sail around the world on a boat and explore neat little places you would never see on a cruise ship or while staying in a hotel. I can tell you from personal experience that sailing is an amazing thing to do and an be quite adventoursome at times. 

My father owns a 40 foot catalina and its his hobby, thats what he loves doing in his spare time. I think when my brother and I are finally out of the house my parents plan on either buying a new boat down in Florida or bringing the boat down with them. THey would then sail for large chunks of time around Florida area, go to lots of neat places....eat lots of awesome food and best of all if you go to small islands and the like many of the people are really quite nice.

I would like to say though owning a boat CAN be exspenive depending on how you approach it. Although if you kept working at had that 18k/year in savings/investing then you could probably be able to afford a decent sized boat (depending on what you buy) within 5 - 8 years... which would allow you to pay at minimum 50 - 70% of the boat off. 

Oh and if you do buy a boat, make sure you go as state of the art as possible that your budget will allow (I would honestly still set a budget if you were to buy a boat). Oh and dont forget aim anapprox 38+ foot boat(as any less it may get a tad uncomfortable if you are on it for extended periods of time) it does also depend on make/model/brand of sailboat you get.

This is just a suggestion, but honestly its what I plan on doing when I retire (yes, still a LONG ways away but ive always wanted to sail around the world).


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## Guest (Oct 27, 2010)

Well ... I've enjoyed canoing and sailing (dingy and a small Edel fixed keel) but I find them both physically challenging these days ... so yes, I have a power boat, a bowrider that we trailer down to the 1000 Islands over the summer ... fair weather boating is what we do ... we don't even camp anymore ... it's motels for us but preferably back home at the end of the day, shower, out for dinner and a few beers downtown ... thanks for the suggestion though ...


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