Time to Retire the Idea of Retirement

[WilsonFourTwo]

I view retirement as not not having to work jobs you don't love, more than not having to work at all. I'm on pace to retire at 45 and sure, I'll take some trips and finally get to volunteer more than a paltry few hours, but what I look forward to most is the ability to (almost) completely dictate that circumstances of my life.

I'd like to just get a job working at a motorcycle shop 20 hours a week. No responsibility, talk bikes all day, maybe score a staff discount.....making a few bucks just happens to be the bonus.

In summary, I love the idea of retiring the idea of retirement being a time of non-work and replacing it with the notion of de-stressing life and better dictating your circumstances. Someone mentioned working at a vineyard.....Brilliant!

[ranchlandsselling]

Originally Posted by WilsonFourTwo

I view retirement as not not having to work jobs you don't love, more than not having to work at all. I'm on pace to retire at 45 and sure, I'll take some trips and finally get to volunteer more than a paltry few hours, but what I look forward to most is the ability to (almost) completely dictate that circumstances of my life.

I'd like to just get a job working at a motorcycle shop 20 hours a week. No responsibility, talk bikes all day, maybe score a staff discount.....making a few bucks just happens to be the bonus.

In summary, I love the idea of retiring the idea of retirement being a time of non-work and replacing it with the notion of de-stressing life and better dictating your circumstances. Someone mentioned working at a vineyard.....Brilliant!

Yup, sign me up for that. The work I do to support a family isn't something I love nor would I write poetry about how I cherished my time there. That said, I'm by no means suffering showing up to my job or anything remotely close to. But I want to retire from that type of work and when I do I'd like to be able to financially not work again and have enough financial cushion (and health benefits) to take care of myself comfortably until death. However, I could completely imagine being paid or earning money (whether by salary/wage/investment/asset ownership) in addition to drinking coffee, reading the newspaper and farting around all day.

[bizaro86]

Originally Posted by Calgary14

It is depressing but what most people don't realize is how far expenses decrease upon retirement. Lower taxes, income splitting, no daily coffee, no transit costs, parking, meals out, work clothes etc. it's a lot bigger than people think. Oh and the big one for most people is no mortgage and no monthly retirement savings payments. So yes it's necessary to save but it's achievable for most people and may not be as far off as you think

Plus investment/pension income isn't subject to CPP and EI deductions.

[GP_Matt]

I am starting to like the idea of a mid career retirement.
It won't be easy to arrange but taking a year off at 35 or 40 sounds like a really solid plan. The beauty of it is that you should be able to pull money out of your RRSPs for very little tax because you won't have an income that year. If both of you put away $10 000 each a year extra into your RRSP for 5 years then you can take the tax breaks on the contribution each year to pay for a good chunk of that money. In five years you have an extra $100000 in your account that probably cost you $60 000 to put in after taxes. During your year of trial retirement you can each pull $50 000 out and pay taxes at a far lower rate and use the money to travel quite nicely or rent a spot on a ski hill for the winter. As long as you take the entire year off then the taxes owed is pretty minimal.

Unfortunately, it is tough to line up the time off but it can definitely be done and something that is on my mind.

[darklord700]

Originally Posted by Calgary14

no daily coffee, no transit costs, parking, meals out, work clothes etc. it's a lot bigger than people think.

While that is true but at least for now I spend more money on my day off than on my working days. $10 a lunch plus transit cost me $20 a day to go to work. But during my day off, I'll go on vacation, buy some useless stuff and it definately costs me more than $20 a day during my day off.

[ranchlandsselling]

Originally Posted by darklord700

While that is true but at least for now I spend more money on my day off than on my working days. $10 a lunch plus transit cost me $20 a day to go to work. But during my day off, I'll go on vacation, buy some useless stuff and it definately costs me more than $20 a day during my day off.

Not to mention a lot of retirees, pensioners, etc are on a fixed income while the costs are increasing. I also spend more money when I'm not at work.

[GP_Matt]

Originally Posted by darklord700

While that is true but at least for now I spend more money on my day off than on my working days. $10 a lunch plus transit cost me $20 a day to go to work. But during my day off, I'll go on vacation, buy some useless stuff and it definately costs me more than $20 a day during my day off.

I think that is the case when you are working but once retired you don't have days off to break you out of your routine so spending should drop.
My dad retired 8 years ago and has said a few times how much cheaper life is now. One saving that he noticed is that he is no longer hit up constantly for $20 for some charity run or school function or whatever it is that coworkers are always bringing around.
You also avoid the late days at the office where you decide that you had a long day so you will just pick up food on the way home.
Combine that with the gas, parking and maintenance that came from driving downtown daily and there is a lot of savings.

[darklord700]

Originally Posted by GP_Matt

It won't be easy to arrange but taking a year off at 35 or 40 sounds like a really solid plan.

I know TransAlta has sabattical benefits which they pay some percentage of your salary, like 50% for you to take a year off every 6 year or something like that.

[MoneyGuy]

I think retirement should be what ever you want it to be. I'm 60 and we can afford to retire now, if we chose to. However, I like what I do, earn a high income and my work gives me opportunities I wouldn't have (like awesome travel, partly tax deductible).

If you want to quit working, go for it but please consider the possibility that you'll live longer than you thought and will need more money than you thought. If you want to keep working past the age when you can afford to retire, go for it. If you want to semi-retire and work part time doing what you love (such as working in a motorcycle shop or some equivalent), go for that.

I have these discussions with my clients all the time.

I'll stress one thing: if you retire it had better be a permanent decision so make sure you can afford it for a few decades, and consider that you may spend more than you did while working. It depends on what you want to do.

[darklord700]

Originally Posted by MoneyGuy

I'll stress one thing: if you retire it had better be a permanent decision so make sure you can afford it for a few decades, and consider that you may spend more than you did while working. It depends on what you want to do.

Yeah, please plan well and don't be like this guy who had to return to work after two years of retirement.

http://www.theglobeandmail.com/repor...ticle11583489/

[MarchHare]

Originally Posted by GP_Matt

Combine that with the gas, parking and maintenance that came from driving downtown daily and there is a lot of savings.

That's assuming a Yop Gobbler lifestyle. Throughout my career thus far, I haven't paid a dime for any of those expenses. I'm taking the monetary savings from not having vehicle-related costs and investing it in my retirement fund instead, leaving me with a much healthier RRSP balance than my suburb-living peers.

[GP_Matt]

Originally Posted by MarchHare

That's assuming a Yop Gobbler lifestyle. Throughout my career thus far, I haven't paid a dime for any of those expenses. I'm taking the monetary savings from not having vehicle-related costs and investing it in my retirement fund instead, leaving me with a much healthier RRSP balance than my suburb-living peers.

I imagine that if you are already living below your means than an income hit in retirement shouldn't matter too much. Once you stop saving money for retirement your salary needs should go down.

[darklord700]

I guess I'm now seeing some examples of aging reducing expenses happening to me. I used to be into electronics, computers, TV and all those toys. But I haven't finished a video game in a few years now, the last game I ever finished was GTA4 from 5 years ago. Maybe I'll pick up a 4K set down the road but there's no need right now. I used to like fine dinning but I don't get too excited about it anymore. It's good for my bank account but it's sad to see what used to bring me joy doesn't anymore.

[Ozy_Flame]

I see a three-phased retirement plan in my future, one that avoids that traditional "cold turkey" approach:

Part 1: "Retire" from having to work, and move into a role/opportunity that I've always wanted to do as WilsonFourTwo suggested. I'd love to open up a small business or sit on a board, while not needing to work anymore - rather, I work because its stuff I love doing. I'd love to open up a guided tour company or something that helps businesses move into international markets. Would be fun.

2. When I really don't want to work anymore, move somewhere overseas that my retirement savings will allow. My level of savings will directly influence the nation I choose to move to in retirement, such taht I can retain a standard of living that is conducive to what I enjoy. I'd love to spend from about 65-80 living in the South Pacific, maybe consulting here and there and volunteering my skills to mentor younger folks.

3. Move back to Canada and see out my last days with my family, and just watch Flames hockey, enjoy drinks with friends, and write a memoir or something. I don't care if my wife is around or not at that point, at that age I'll be grumpy, crotchety, and do anything I want solely for me. Sounds selfish, but when you're 90 years old, who gives a damn.

[GP_Matt]

How does health care affect leaving the country long term in old age?
I assume you need to buy insurance wherever you go but when you come home do you just pick up where you left off? What if you have a major condition that develops? Can you just stabilize overseas and then fly back to Canada for all the treatments?

[Flamenspiel]

^^Alberta Health's limit is 7 months out of the country per year.The big problem is teeth, they become very expensive once you are out of a benefit plan. Get all your cavities filled, ortho work, and teeth pulled(if necessary) before you retire. Out of country insurance is very pricey past a certain age.

[Zarley]

This is pretty good advice:

Originally Posted by @GSElevator Twitter Account

You shouldn't retire until your money starts making more money than you made in your best year.

I hope to be successful enough that I can take it.

[Wormius]

Originally Posted by GP_Matt

How does health care affect leaving the country long term in old age?
I assume you need to buy insurance wherever you go but when you come home do you just pick up where you left off? What if you have a major condition that develops? Can you just stabilize overseas and then fly back to Canada for all the treatments?

Along with that - what about CPP and OAP? Do you get those regardless of where you live?

[chemgear]

http://www.cbc.ca/news/canada/canada...debt-1.2548633

Canada's middle-class is mortgaging its future to stay afloat, making the Canadian dream "a myth more than a reality."

That's the blunt assessment of an internal Conservative government report, an unvarnished account of the plight of middle-income families that's in contrast to the rosier economic picture in this month's budget.

The report also refers to debt, saying "many in the middle spend more than they earn, mortgaging their future to sustain their current consumption."

"Over the medium term, middle-income Canadians are unlikely to move to higher income brackets, i.e., the 'Canadian dream' is a myth more than a reality."

[opendoor]

Originally Posted by GP_Matt

How does health care affect leaving the country long term in old age?
I assume you need to buy insurance wherever you go but when you come home do you just pick up where you left off? What if you have a major condition that develops? Can you just stabilize overseas and then fly back to Canada for all the treatments?

If you leave the country for more than 7 months you generally lose your medical coverage. So if someone retired to another country and stayed there more than 7 months a year, they'd need travel insurance for when they came back to Canada.

If they decided to return to Canada permanently they can get health coverage again but there's generally a 3 month waiting period. So you wouldn't want to bank on being able to return to Canada for free medical coverage if something major came up.