[Slava]

Originally Posted by Devils'Advocate

Okay, so I was talking to a financial guy yesterday about my situation.

I'm going to do some rounding here to make the calculations easier. Let's say I make $100,000 per year. If I work to 60, when I retire my pension will pay me $70,000 per year. So the financial guy asked me how much I WANTED to make each year. My response was that I would preferably like to be making the same - $100,000. He said, well, no, most people need much less when they retire. My thought was, uh, WHY? Wouldn't you want MORE in retirement? What if I plan on travelling the world? I most certainly don't plan on sitting at home watching TV 16 hours a day.

I was told that to make $100,000 in my retirement, I'll have to start putting $3,000/month into a 3% return RRSP. Which obviously means I'd have to live like a hermit between now and retirement.

So I guess my question is - why do people have their expenses go DOWN after retirement? Like I said, I would think people would be going on MORE vacations; MORE entertainment outings; etc.

I think that for the first decade or so of retirement people do spend more than say for their final 15 years (or so). Reitirement income isn't a simple straight line with a little bit of inflation mixed in for good measure.