Retire
- Thread starter Downtime
- Start date
Work out the basic math based on your lifestyle. Is your vehicle paid off too? Will u soon get another? How much will you spend on it?
Figure out your annual utilities expenses along with property tax and insurance. Factor in a few repairs along with what you spend annually on food and meds.
What are you spending on hobbying annually and whatever else. Etc.
If your annual expenses were $50K a year then $800K would be depleted in roughly 16 years or less.
Figure out your annual utilities expenses along with property tax and insurance. Factor in a few repairs along with what you spend annually on food and meds.
What are you spending on hobbying annually and whatever else. Etc.
If your annual expenses were $50K a year then $800K would be depleted in roughly 16 years or less.
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Why not do something part-time on the side - nothing hard, just something to keep you busy and keep the mind active.
You only need a 6.25% return for that 800k to generate 50k a year and never deplete itself.
Does anything actually give a guaranteed 6.25% return though?
Also living on 50k/year sounds rough to be honest but I guess if house is paid off it's not super horrible.
There is no guarantee on anything. In finance, US bonds is used as proxy for risk free rate, but technically even that isn't risk free. If you put 100% into GIC, you will 100% lose due to inflation and taxes. Also, $50k/year is far from rough. I retired in my 40s and every year I spend ~$100k but I travel a lot, but this is my peak spending GO GO years.. If I stayed home, my spend would be $55k/year with paid off house & car.
To OP:
1. Figure out what your spend will be after retirement.
2. Determine what your CPP/OAS/Pension will be.
3. Calculate the delta. That is what you will need your portfolio to generate.
There are so many things that are unique to each persons situation. If you have a spouse with their own CPP/OAS/Pension, then things become easier especially with income splitting at 65. Where is this $800k invested? If registered, maybe RRSP meltdown can be a strategy so you are not hit with high RIF withdrawal at 71. Depending on your situation, maybe delaying CPP/OAS to 71 should be considered. Tax optimization should be talked about...where to draw money from and how much. How risk adverse are you and what is your asset allocation. What about legacy? Lifespan/heath? Bucket list items? At 62, you have probably 10 good years before things slow down and 20 before they REALLY slow down.
Here are some expenses some people didn't listen to, that I know.
Kitchen hardware or appliances how new
Washer/dryer
Roof of house
Furnace, boiler / AC unit.
Snow thrower
Auto
Windows
TV
Mattress
Kitchen hardware or appliances how new
Washer/dryer
Roof of house
Furnace, boiler / AC unit.
Snow thrower
Auto
Windows
TV
Mattress
True. I also didn't factor in CPP and oldage coming in too plus whatever income tax bracket he wants to be in.
Seems fine to retire especially with a house paid off that can be sold down the road and use those funds to further downsize and such.
I'd def take the financial advisors advice. The only issue I see is spending habits annually for non-essential things, but that doesn't seem to be an issue.
Spending habits is definitely a thing to consider, especially if one is a member of a board like this. I find when I'm on a vacation week, I just end up spending more on silly shit because I have free time. Now imagine all the time being free. At least when working, not only am I earning money, but half my day is taken up so I can't spend frivolously
Free time????
Try VOLUNTEERING at....
Hospital
Food Bank
Animal shelter spca
etc ... any more?
Asking AI
The average Canadian senior household spends roughly $65,000 to $75,000 per year in retirement, though your actual costs will depend heavily on your lifestyle, housing status, and location. [1]
General Cost Guidelines
Key Expense Categories
Government Benefits to Offset Costs
Nursing homes,, I heard from 2.5k to 12K a month.
The average Canadian senior household spends roughly $65,000 to $75,000 per year in retirement, though your actual costs will depend heavily on your lifestyle, housing status, and location. [1]
General Cost Guidelines
- The 70 Percent Rule: Many financial planners suggest you will need about 60% to 70% of your pre-retirement income to maintain your standard of living. [1]
- Annual Expenses: A typical modest retirement can cost less than $40,000 a year, while an average or active lifestyle with frequent travel often ranges from $50,000 to $80,000+ per year. [1, 2, 3]
- Private Care Costs: If you move into a private, non-subsidized retirement home later in life, expect base costs of $2,500 to $7,000 per month, excluding specialized nursing or extra care. [1]
Key Expense Categories
- Housing: This is usually the largest expense. Even with a paid-off mortgage, you must budget for property taxes, home insurance, and ongoing maintenance. [1]
- Lifestyle & Hobbies: Travel, dining out, and leisure can add anywhere from $6,000 to over $35,000 annually depending on whether you opt for local hobbies or lavish international trips. [1]
- Healthcare: While basic medical needs are covered in Canada, later stages of retirement can introduce significant out-of-pocket costs for medications, mobility equipment, or assisted living. [1]
Government Benefits to Offset Costs
- Canada Pension Plan (CPP): The average monthly CPP payout for a new beneficiary at age 65 is roughly $804, with a maximum possible amount of about $1,508 in 2026. [1]
- Old Age Security (OAS): Available to eligible residents at age 65, offering a maximum of up to $742 per month in 2026. [1, 2]
- To get a personalized estimate of your government benefits and savings targets, you can use the Government of Canada Retirement Income Calculator.
Nursing homes,, I heard from 2.5k to 12K a month.
I retired early 40s on my investments, WELL over a decade ago, so I have "lived experience" on this.
It really, really comes down to your expenses. If you're spending more than you make, it does not matter how much you make. So, here is my suggesting...
What are your total expenses, today, and take a view out...
If you're expenses are, say, $50,000 do a Factor of Safety/Shit happens of 25%. So $50,000 x 1.25 = $62,500. The "Safe Withdraw Rate" is 4%. Thus you need a total of (before taxes) of $62,500/4%. Thus, you need $1,562,500. At $80,000, you're not there.
For today...With $80,000 assuming in a Taxable (TFSA would be odd...), you can do, using SWR, $800,000 x 4% = $32,000 a year. Assuming this is Dividends (taxable account) you - UNDER A LOT OF ASSUMPTIONS - won't have to pay any income taxes due to the Dividend Tax Credit. Your person income file and mixes of income will determine when you start to pay taxes. There are a number of modelling tools out there. I like https://www.taxtips.ca/calculators/canadian-tax/canadian-tax-calculator.htm
Is $32,000 + any misc. income enough to cover all your expenses with a Factor of Safety for car purchase, roof, emergencies blah blah blah? You can assume dividends will grow 5% a year and if you have good blue chip stocks, the underlying stock will grow 4% as well.
"Smart" Guys will talk about "Wahhhhha, what about OAS". Look. Making too.much.money. is NEVER a problem so the DTC uplift factor creating some clawback is just noise when you do the Net Present Value calculation. Most people lack the ability think beyond 6 months.
When you're eligible, you can add CPP and all that for additional income and see how you're doing. You can also model selling your house and downsizing.
Again, income, assets AND you're expenses are needed to make a judgement call.
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Thanks for all the info. I have added up all expenses right down to dog food for my dog. My yearly expenses are around 30,000 per year. House is paid worth about 900,000. I’m getting 980 cpp per month and 800,000 in investments I’m pretty much a home body so I don’t spend too much. I’m pretty sure I’m good. Thanks guys.
Consider, not immediately but within a year or so, to move your investments - RRSPs(if possible), TFSA, mutual fund, ETFs, etc - into comparable funds from an insurance company. The only reason I'm suggesting this is because if/when you die, most money gets taxed immediately at death and usually about 50% goes to the government while those same savings within an insurance company the company will take about 25% and the rest goes to whomever you've named as the beneficiary(s).
Besides once you turn 71your RRSPs turn to RRIFs and those you have to withdraw a certain percentage every year as mandated by law while those same funds within an insurance company's investments are not.
I've been doing the insurance company option and just wish I would have started moving my money there sooner.
Just another option for your consideration.
As long as your investments make (a lot?) more than you spend you should find your retirement funds growing even while you're using some of that money, as well as CPP/OAS to live.
Enjoy your retirement!!
LTO_3
Besides once you turn 71your RRSPs turn to RRIFs and those you have to withdraw a certain percentage every year as mandated by law while those same funds within an insurance company's investments are not.
I've been doing the insurance company option and just wish I would have started moving my money there sooner.
Just another option for your consideration.
As long as your investments make (a lot?) more than you spend you should find your retirement funds growing even while you're using some of that money, as well as CPP/OAS to live.
Enjoy your retirement!!
LTO_3
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I ask grok
in Canada what would Canadian pension plan do if somebody is not planning to retire or refuse to retire?
Nothing forces you to retire or stop working. The Canada Pension Plan (CPP) has no mandatory retirement age and does not require you to stop working (or “retire”) to receive benefits. You can keep working indefinitely while collecting CPP (or while delaying it).
Key rules if you continue working / refuse to retire
CPP is designed to be flexible. Many people work past 65 (or longer) and either:
Your decision depends on health, other income/savings, tax situation, and life expectancy—not on any requirement to “retire.” For the most accurate personal numbers, check your My Service Canada Account or contact Service Canada, as the exact amount depends on your contribution history. (Note: Quebec has the similar Québec Pension Plan with its own rules.)
in Canada what would Canadian pension plan do if somebody is not planning to retire or refuse to retire?
Nothing forces you to retire or stop working. The Canada Pension Plan (CPP) has no mandatory retirement age and does not require you to stop working (or “retire”) to receive benefits. You can keep working indefinitely while collecting CPP (or while delaying it).
Key rules if you continue working / refuse to retire
- You can start CPP anytime from age 60 to 70, regardless of whether you are still employed or self-employed. Starting earlier (before 65) permanently reduces the monthly amount (0.6% per month, up to 36% at age 60). Delaying past 65 permanently increases it (0.7% per month, up to 42% at age 70). There is no financial benefit to waiting past age 70—the maximum is reached then.
- You can work while receiving the pension. Your CPP payments are not reduced because of employment income. In fact, if you are under 70, still working, and still contributing, you can earn a Post-Retirement Benefit (PRB). Each year of contributions while receiving the pension adds a permanent extra amount to your monthly CPP (paid for life, starting the following year).
- Contribution rules while working and receiving CPP:
- Ages 60–64: Contributions are mandatory (you and your employer, or both shares if self-employed). These fund the PRB.
- Ages 65–69: Contributions become optional. You can elect to stop by filing Form CPT30 (Election to Stop Contributing to the Canada Pension Plan) with the CRA and giving a copy to your employer(s). If you keep contributing, you continue earning PRBs.
- Age 70+: Contributions stop automatically, even if you keep working. No further PRBs.
- If you never apply / refuse to start CPP: The plan does not force payments on you. You simply continue (or stop) contributing based on the rules above until age 70. After 70 there is no further increase for delaying, and you risk forgoing payments you could have received (limited retroactivity may be available if you apply later, generally up to about 11–12 months in some cases, but not unlimited). Official guidance notes there is no advantage to waiting past 70.
CPP is designed to be flexible. Many people work past 65 (or longer) and either:
- Delay starting CPP until closer to 70 for a larger lifelong payment, or
- Start it earlier/while still working and potentially build PRBs.
Your decision depends on health, other income/savings, tax situation, and life expectancy—not on any requirement to “retire.” For the most accurate personal numbers, check your My Service Canada Account or contact Service Canada, as the exact amount depends on your contribution history. (Note: Quebec has the similar Québec Pension Plan with its own rules.)
Some of the agencies are looking for drivers!!!
I would that in a heatbeat.Some of the agencies are looking for drivers!!!
