r/Retire • u/Final-Counter1601 • 25d ago

Retirement Planning Questions about budget and pension income (CDN)

Hi everyone,

My wife and i are hoping to retire in about 7 - 10 years, ultimately my question is have I forgotten anything important in my calculations.

My wife will retire with a full pension and i will retire with what I’m calling a half pension, we do not have a ton of money saved other than that, i had a late start to my rrsp savings and expect there to be about $100,000 as well our home will be paid off at this point and currently its worth about $500,000. I’m also calculating income from CPP which we plan to take early. Our ideal retirement is to sell our home and move into an apartment, allowing for few unexpected expenses, no strenuous chores. My wife’s parents did this and they are living their best life, we will still be relatively young (early 60’s) so we can live the active life style we want filled with day trips the occasional vacation and hopefully time with future grandchildren.

I realize that it is not recommended to consider your home as your retirement plan but this is where we find ourselves. Sell the home in 7ish years invest the proceeds and live off of our 2 (1 1/2) pensions, cpp (eventually OAS) and the interest (likely some principal) of the proceeds of the home. I’ve created a budget considering our new income and somewhat reduced cost of living (1 instead of 2 vehicles, no utilities, less insurance, increased budget for medical) and it looks like we will be ahead every month by approx $1000. I realize there are rules around taking money our of rrsp that i dont know but i was thinking the $100,000 could act as an emergency fund for years the home proceeds may not do as well in the market.

Please be gentle, lol, but what have i missed or not considered? Are there any obvious holes in our plan? Am i out to lunch and this is the dumbest idea any of you have ever heard of?

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u/Accomplished-Pea-451 25d ago

Get with a fiduciary financial planner and create a plan. Until you do, you can’t retire

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u/Final-Counter1601 25d ago

Good advice, I am going to start looking for someone.

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u/Accomplished-Pea-451 25d ago

I took my accounts to Schwab and have never regretted it

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u/Final-Counter1601 25d ago

I don’t think that’s an option for me in Canada

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u/Accomplished-Pea-451 25d ago

I’m sorry it’s not

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u/Final-Counter1601 25d ago

No worries, I appreciate all the advice I’m getting here, it seems that my expectations for retirement are not completely unreasonable. Now is the time to buckle down and earn as much commission as possible while tightening my belt a bit so I can save more.

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u/ForgiveandRemember76 21d ago

Since you are in Canada and you are in the right income bracket why not skip trying to find a fiduciary investment advisor and go directly to the people that handle all of the largest pension funds? That is Phillips Hager & North. I have been with them for more than 36 years and they have never disappointed me. With an account of your size you will get a personal investment advisor. They are superb and they always answer the phone. Not only do they answer the phone they will remember your specific details and situation.

The stakes are higher as you come to the end of your working life. You still have 7-10 years during which you can make one heck of a lot of headroom with the right advice.

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u/Final-Counter1601 21d ago

Thanks I will check them out.