Will you retire at 65 or will you keep working - til 100 : 0. This lady did it...

[Lynn49]

Hubby retired this year in february with a full company pension and his Regie des rentes de Québec (quebec govt pension). He will be receiving the OAS in June. I also have a Québec Govt pension which im collecting and will receive the OAS next year. We definitely arent living in the style we`ve become accustomed to but then we dont have any of the previous expenses either (mortgage, credit cards (all paid off), etc). Retirement creeps up on you and you wont even realize it. It is extremely hard to save for retirement when you have a mtg, children, credit cards, college and University expenses for the kids, etc. But the belief that you will be looked after with a govt pension is unrealistic also. We were Lucky because hubby worked for a major multi-national company and now had a great pension from that company, otherwise i think we would be up a creek without a paddle.

You're so right, SnowFlakey...we're comfortable, have good savings, and are fortunate that my hubby retired with a full pension and benefits. I'll receive my CPP starting this year, hubby already does...but it's certainly not something we thought we'd see in our futures, and I hope the younger generation is saving enough to not have to count of it, either. It must be so frightening for seniors who have to depend on the government to keep them afloat...a serious lesson for the younger set...

[blueeyetea]

no such thing as freedom 55 these days

people are living longer and healthier lives

55 is the 30

it's more like freedom 85

I think that's true up to a point. So many businesses are profiting from this fear mongering. At the front of the line are financial institutions who forecast doom and gloom at the same time as they skim your profits off the savings you give them.

I've been reading books on investements, can you tell?

[Lynn49]

I think that's true up to a point. So many businesses are profiting from this fear mongering. At the front of the line are financial institutions who forecast doom and gloom at the same time as they skim your profits off the savings you give them.

I've been reading books on investements, can you tell?

Our DD is a professional financial investor, so I have to take issue with your blanket statement that "financial institutions are forecasting doom and gloom". It's fine, of course to read books on investments, but quite another to understand what has taken many years of education and working in real world markets to completely understand what professionals have learned about international financing and world markets. One would be unwise, for instance to open up a book by someone like Suze Orman and use her "words of wisdom" to plan one's portfolio.
Our DD in no way is a profit of doom, and in fact our investments over the past few years have never seen such a high percentage of returns.

[blueeyetea]

It's fine, of course to read books on investments, but quite another to understand what has taken many years of education and working in real world markets to completely understand what professionals have learned about international financing and world markets.
Our DD in no way is a profit of doom, and in fact our investments over the past few years have never seen such a high percentage of returns.

I certainly hope your daughter is choosing appropriate investments for you. If you don't mind my asking, why kind of investments do you have? Mutual funds, index funds, or stocks and bonds?

What I was getting at are the messages that someone needs to save $1,000,000 to retire, or that 80% of one's salary is necessary, which isn't necessarily true considering we also get CPP and OAS at retirement. With that worry in mind, you walk into a bank to invest for your retirement, and unless you educate yourself beforehand, the bank will sell you investment products that pays them hefty fees every year, regardless if the product made or lost money. Over 20 years, that's potentially a lot of money that doesn't go to you.

You say your daughter is a professional financial investor? I've never heard the term. Does she work for a pension fund or a big company and she invests their money on the stock market? Or is she a financial advisor, and sells investments to clients?

[Shwa Girl]

Our DD is a professional financial investor, so I have to take issue with your blanket statement that "financial institutions are forecasting doom and gloom". It's fine, of course to read books on investments, but quite another to understand what has taken many years of education and working in real world markets to completely understand what professionals have learned about international financing and world markets. One would be unwise, for instance to open up a book by someone like Suze Orman and use her "words of wisdom" to plan one's portfolio.
Our DD in no way is a profit of doom, and in fact our investments over the past few years have never seen such a high percentage of returns.

Yes. The Canadian economy has done well when other economise have not. Investment in Canadian sectors have done well. Now, US sectors (some) are looking better. Housing in the US is on the rise in some areas, set back by weather, but jobs in construction and spin off jobs related to US housing is improving (depending on location).

[Lynn49]

Every situation is different, and it depends on whether or not you have a company pension to rely on as well.
Usually when they say you need 80% of your income, CPP and OAS makes up some of that income.
They don’t say you need 80% of your income plus OAS and CPP on top of that. Most Financial Institutions (all) will work this out for someone personally.
If it is a concern, or if one is unsure of how much they will need, a personal plan done at any financial institution could alleviate some of the concerns.
For some people, retiring on 1,000,000 just meets their standard of living...it's all relative to one's needs.
If someone was making 100,000.00 prior to retirement, 80% would mean retirement income of 80,000.00.
CPP and OAS are included in that 80% figure, but one has to make up the rest of the approximately 70,000.00. As far as banks or other FIs making money, yes, that's what every company in the world is interested in doing. But for the profits one makes through proper investing should make any small yearly fee quite acceptable.

Our DD is a Canadian Certified Financial Planner (CFP, FMA) and provides investment and wealth management services to her clients, and yes she invests in all markets, funds, etc...there are literally thousands of them in the world, and yes, lol, she takes very good care of us.

I would suggest everyone visit their financial institution's financial advisor (or Planner, if one qualifies), to determine one's future retirement needs as well as to plan for their future growth. Then take it or leave it; but they'll be wiser than when they went in.
It costs nothing.

[Lynn49]

Yes. The Canadian economy has done well when other economise have not. Investment in Canadian sectors have done well. Now, US sectors (some) are looking better. Housing in the US is on the rise in some areas, set back by weather, but jobs in construction and spin off jobs related to US housing is improving (depending on location).

Agreed, in some sectors housing has improved, but over-all it's not on any great rebound, and continues to bring the economy down. Materials costs continue to increase also, adding to the problem. It's not something I'd be investing in for the time-being..

[mandolinatou]

I don't think I want a traditional retirement. I am 30 right now and working like a dog for 20-40 years to pay off the mortgage and save does not interest me at all. I would rather get to a point as soon as possible that I can work part time and take 1-3 months worth of vacation a year....probably starting with 25 hours a week of work and 1 month worth of vacation and increasing over time...as soon as I can afford it. I don't think I would know what to do with myself with a traditional retirement and I also think it is better to have more time with my child and husband when we are younger.

[Shwa Girl]

I don't think I want a traditional retirement. I am 30 right now and working like a dog for 20-40 years to pay off the mortgage and save does not interest me at all. I would rather get to a point as soon as possible that I can work part time and take 1-3 months worth of vacation a year....probably starting with 25 hours a week of work and 1 month worth of vacation and increasing over time...as soon as I can afford it. I don't think I would know what to do with myself with a traditional retirement and I also think it is better to have more time with my child and husband when we are younger.

you have made a detailed plan
another plus to your decision -- health care. Most large national companies that have health care for their employees gill give some benefits to long term permanent part time employees.

[Lynn49]

As long as everyone stays healthy.....unfortunately for many people that's not the case. We did the opposite; we both worked (me part-time so I was home before and after school), paid off our mortage early, saved money that was untouchable from the time we were married, are now retired with hubby's full pension, savings and are free to do whatever we want to and able to help the kids along when they needed it, have a savings plan for our grandson....I'd really hate to be poor or living on government handouts in my senior years; that would be so difficult and is difficult for so many people...it's terribly sad for so many.....

[mandolinatou]

Lynn49 the only problem with that is that I don't know anyone who has a traditional pension in my age range. I think traditional pensions will die out with the baby boomers. I know several baby boomers who have it made in retirement with government pensions...that literally have more money than they know what to do with so they and their spouses have quality lives...even frivolous lives in my opinion. I don't see that ever happening for me nor most people in my generation....and even if it could happen my second problem is that both my parents died younger than age 45. So I wonder if I will even get to see a traditional retirement. I feel like I need to enjoy life while I have it. Dream (and save) as if you'll live forever but live as if you'll die tomorrow thats my motto. So I plan to work right up until I can't get to work anymore...but vacation on short sabbaticals. Perhaps I should work for the schools.

[frugal50]

Lynn49 the only problem with that is that I don't know anyone who has a traditional pension in my age range. I think traditional pensions will die out with the baby boomers. I know several baby boomers who have it made in retirement with government pensions...that literally have more money than they know what to do with so they and their spouses have quality lives...even frivolous lives in my opinion. I don't see that ever happening for me nor most people in my generation....and even if it could happen my second problem is that both my parents died younger than age 45. So I wonder if I will even get to see a traditional retirement. I feel like I need to enjoy life while I have it. Dream (and save) as if you'll live forever but live as if you'll die tomorrow thats my motto. So I plan to work right up until I can't get to work anymore...but vacation on short sabbaticals. Perhaps I should work for the schools.

odd to have both parents die at such a young age! was it health related? or something more sinister like homicide/drug/alchohol related?

[Lynn49]

Lynn49 the only problem with that is that I don't know anyone who has a traditional pension in my age range. I think traditional pensions will die out with the baby boomers. I know several baby boomers who have it made in retirement with government pensions...that literally have more money than they know what to do with so they and their spouses have quality lives...even frivolous lives in my opinion. I don't see that ever happening for me nor most people in my generation....and even if it could happen my second problem is that both my parents died younger than age 45. So I wonder if I will even get to see a traditional retirement. I feel like I need to enjoy life while I have it. Dream (and save) as if you'll live forever but live as if you'll die tomorrow thats my motto. So I plan to work right up until I can't get to work anymore...but vacation on short sabbaticals. Perhaps I should work for the schools.

Sorry to hear of your parents' early passing; that must have been very difficult for you.
Yes, pensions don't exist for everyone, but I also fear (although I've been assured it would never happen) that government pensions may go the way of the dodo-bird, too...no matter what tax bracket you're in, I really do encourage you to speak with a financial advisor at your bank (it's a free service)...voice your concerns and arm yourself with more information. Even putting $20 a month away now, perhaps $50 later will accumulate into a very fat portfolio..if not for you, then for your children.
And you're right...choosing a career that affords a pension is a very good decision to make early in life..

You may find this interesting:
http://www.fin.gov.on.ca/en/consulta...sion/oris.html

Regarding the couple you know you are living 'high on the hog' with only CPP and OAS, baffles me: The average monthly amount as of October 2012 was $514.56. The maximum payout for the first quarter of 2013 is $546.07, according to Service Canada.(http://www.cbc.ca/news/business/taxe...ined-1.1239963)
The average CPP amount is roughly just over $500 per month.

For a couple living on just over $2000 and having 'the good life' is remarkable; I'm afraid I could never do that. Perhaps their savings are topping off those two plans...Even with no bills, no mortgage I'd find it a tight squeeze. But as I said: for some people even a million a year isn't enough...sadly, I'm not one of those!

[momof5boys]

Sorry to hear of your parents' early passing; that must have been very difficult for you.
Yes, pensions don't exist for everyone, but I also fear (although I've been assured it would never happen) that government pensions may go the way of the dodo-bird, too...no matter what tax bracket you're in, I really do encourage you to speak with a financial advisor at your bank (it's a free service)...voice your concerns and arm yourself with more information. Even putting $20 a month away now, perhaps $50 later will accumulate into a very fat portfolio..if not for you, then for your children.
And you're right...choosing a career that affords a pension is a very good decision to make early in life..

You may find this interesting:
http://www.fin.gov.on.ca/en/consulta...sion/oris.html

Regarding the couple you know you are living 'high on the hog' with only CPP and OAS, baffles me: The average monthly amount as of October 2012 was $514.56. The maximum payout for the first quarter of 2013 is $546.07, according to Service Canada.(http://www.cbc.ca/news/business/taxe...ined-1.1239963)
The average CPP amount is roughly just over $500 per month.

For a couple living on just over $2000 and having 'the good life' is remarkable; I'm afraid I could never do that. Perhaps their savings are topping off those two plans...Even with no bills, no mortgage I'd find it a tight squeeze. But as I said: for some people even a million a year isn't enough...sadly, I'm not one of those!

With no mortgage, we would easily be able to live on $2000 per month - and that includes giving away 10% to charity. We rarely eat out, grow a lot of our food, and opt for walks by the river rather than a night on the town

[Lynn49]

Yes, it certainly is possible, but like I mentioned earlier, it's all about life-style and expectations...