Topic: Money Thread Spin off - Is this Enough to Retire on?

[ArticSteve]

Didn't the Conservatives raised the retirement age to 67?  Shouldn't that be used in the calculations?

Beginning in 2023 and finalizing in 2029 at which time it will be next to worthless as it comes from general revenues.

Imho it should start to go up to 70 or so in that time scale although people will rant and scream about that.  Perhaps it should be set at 15 years less than the average male life expectancy ( 82) which would make 67 right about now.

OAS is a "social" benefit, not unlike "social assistance".  In the not so distant future it will only be provided to ppl that are in poverty.  Don't use it in your calculations. Presently, ppl 55 years and younger are getting absolutely robbed by the retires of today right across the spectrum: taxes in all forms and healthcare.





 

[tooscoops]

i selected yes... it's all relative... you can retire on anything you choose... how long you do it and how well you live are the things that might need to be altered.

i have many friends that put away *maybe* 1% a year themselves... the rest is just what is collected from them... and somehow they think they will be retiring at 55 and raking in the same pay that they get while working..... i usually have to walk away from the conversation as they feel entitled to this "reward" for working... they don't understand that the money won't magically show up, just because they want it.

my kids might not like it (might love it though!) but i just figure i'll be a risk taker and die young before i've tapped out my resources. five years of retirement sounds fun. more than that and i think i'd get bored.

[mmret]

I suppose in real terms yes. Up until that point you have a bad investment that might improve. When you sell you have reality.

A notion as false as your fallen prophets.

(See what I did there?)

[Rupert]

    OAS is paid for by tax payers. That means all of us including current retirees. Rich GPP retiree folk have it raked back after receiving it. So why the problem. You might suggest that the rake back level be reduced or work faster to zero but I want my OAS thank you very much. I paid for it (general revenue or not) and still am doing so in retirement. It's an equaliser for those sans bailed out GPPs and will be around as long as folk insist on it. 'Taken to the cleaners by retirees' is rubbish. I did not slag retired folk when I was working.

Didn't the Conservatives raised the retirement age to 67?  Shouldn't that be used in the calculations?

Beginning in 2023 and finalizing in 2029 at which time it will be next to worthless as it comes from general revenues.

Imho it should start to go up to 70 or so in that time scale although people will rant and scream about that.  Perhaps it should be set at 15 years less than the average male life expectancy ( 82) which would make 67 right about now.

OAS is a "social" benefit, not unlike "social assistance".  In the not so distant future it will only be provided to ppl that are in poverty.  Don't use it in your calculations. Presently, ppl 55 years and younger are getting absolutely robbed by the retires of today right across the spectrum: taxes in all forms and healthcare.





 

[ArticSteve]

OAS is paid for by tax payers

OAS is financed by borrowing and adding to the National Debt.

'Taken to the cleaners by retirees' is rubbish. I did not slag retired folk when I was working.

Because you weren't being taxed out of existence.  Present rates of all taxation are completely unsustainable.

[Snowman]

I found it interesting, going though my mother's financial records for the past 7 years, how well she lived on $2190 net per month. CPP, OAS, and a DC company pension. Her RRSP's were actually making money as she drew out less than the yearly gains.

[OliverD]

I found it interesting, going though my mother's financial records for the past 7 years, how well she lived on $2190 net per month. CPP, OAS, and a DC company pension. Her RRSP's were actually making money as she drew out less than the yearly gains.

It's certainly doable if you don't have any debt and pay reasonable property taxes. It wasn't that long ago that I had a similar net income and had a mortgage payment.

[rrocket]

I found it interesting, going though my mother's financial records for the past 7 years, how well she lived on $2190 net per month. CPP, OAS, and a DC company pension. Her RRSP's were actually making money as she drew out less than the yearly gains.

Interesting.  She was living for free at your place though, wasn't she?  That would make a large difference in cost of living expenses I'm guessing.

[Snowman]

I found it interesting, going though my mother's financial records for the past 7 years, how well she lived on $2190 net per month. CPP, OAS, and a DC company pension. Her RRSP's were actually making money as she drew out less than the yearly gains.

Interesting.  She was living for free at your place though, wasn't she?  That would make a large difference in cost of living expenses I'm guessing.

She has only been at our place for 3 years and insisted on paying rent. For four years prior she had a cottage and a house free and clear but paid taxes and maintenance so it was a wash. She spent more on personal items down here due to access to shopping vs. driving four hours up north to a major center. She also bought anew vehicle down here....very interesting.

[blotter]

t's certainly doable if you don't have any debt and pay reasonable property taxes.

that^^^

problem is (at least from my experience) I'm seeing more and more people closing in at retirement or even in retirement doing consolidations / big loans or even taking out new mortgages..

there seems to be a much bigger amount of older people lending in their later years than ever before.

[OliverD]

t's certainly doable if you don't have any debt and pay reasonable property taxes.

that^^^

problem is (at least from my experience) I'm seeing more and more people closing in at retirement or even in retirement doing consolidations / big loans or even taking out new mortgages..

there seems to be a much bigger amount of older people lending in their later years than ever before.

Obviously it's a problem for some people, but there are also those who will make almost as much if not more in retirement than they do while they're working.

[tpl]

I found it interesting, going though my mother's financial records for the past 7 years, how well she lived on $2190 net per month. CPP, OAS, and a DC company pension. Her RRSP's were actually making money as she drew out less than the yearly gains.

Your mother was young enough to still have RRSP or do you mean RRIF ?

I only have 2 years before my RRSP has to become a RRIF  and even when I have to take out the official payment I intend to re-invest most of it to keep the pot growing.

[Rupert]

   Why is OAS money borrowed and added to the national debt but large company bailouts and incentives...not. 'Taxed out of existence' is rubbish. We had to pay high interest rates for mortgages 12%+. Sure houses were cheaper but wages were lower also. Seniors pay taxes on income still. That part does not just go away. Most private sector pre-senior workers were mainly onlookers back in the day I think. Helpless to vote any way that offered an equitable approach...and not being able. either. to identify one. We managed with 'home ownership made easy' plans (HOME) and I suspect RRSPs and those of us who wanted to give our children a good start RESPs. Both of the latter are still available today. But guess what...when you withdraw from your RRSP (RRIF) in retirement...you pay the deferred taxes back....they don't go away. So government is getting a big chunk of money now and it is growing every year. So maybe we mostly voted correctly. Who knows? The world has gone from being round to a flat format and I doubt if many private sector seniors feel in any way responsible for this aspect of modern life. Coping with the low interest rates on dwindling reserves is enough to ponder. The same rates that afford the acquisition of multiple garages and lexaudus and multi bathrooms for others.
   Personally I think that OAS might be a better and more convenient vehicle, than CPP, for levelling retiree pensions to some degree in this flat landscape. Lumps are anathema and one suspects there are lots of hollows around that need padding a bit also.
   
   
   
   

[Snowman]

I found it interesting, going though my mother's financial records for the past 7 years, how well she lived on $2190 net per month. CPP, OAS, and a DC company pension. Her RRSP's were actually making money as she drew out less than the yearly gains.

Your mother was young enough to still have RRSP or do you mean RRIF ?

I only have 2 years before my RRSP has to become a RRIF  and even when I have to take out the official payment I intend to re-invest most of it to keep the pot growing.

Sorry, she had a RRIF that she drew the minimum amount from and segregated funds. Her FA is a great guy and even offered to fly in to do the paper work and get the ball rolling so I could collect the money quickly.

[johngenx]

I know some folks that live happily on $10K a year and some that need 20x that amount.  How long is a piece of string?  It depends.

You also need to classify what "retirement" is.  Personally, I don't think I could ever just pull the pin, pull up the lawn chair, and "retire" as in the way that many think of it.  My father "retired" in 1987 and still works.  I don't see a career/full-time/etc life, but don't see myself not doing something. (when not climbing/skiing)

We won't need the house, omg, way too much room and too much upkeep. Downsize.  A nice ski-out condo at Red Mountain can be bought for ~$450K less than my house, so there's a nice move.  Living costs there are lower than here, especially in property taxes, so that eases the operational budget.  $8-10K a year on kid school/etc will be gone.  Etc, etc.