Time to Retire the Idea of Retirement

[Sylvanfan]

I have a 71 year old and 69 year old employees who both told me they need to work three more years, and neither guy is very proficient with a computer.

I actually managed to get rid of all my non mortgage debt, and increase my RRSP contributions by 40% last year. Granted a late 30's person like me saving under 15k in a portfolio that only is worth about 175 is still woefully pitiful. To retire poor I should have 300 and be saving 25 a year...but I feel much more optimistic today than I did 12 months ago, that I can die as a part time employee not like the two guys I mentioned at the start of my post.

[darklord700]

Originally Posted by Sylvanfan

Granted a late 30's person like me saving under 15k in a portfolio that only is worth about 175 is still woefully pitiful.

Don't be discouraged because statistically you are doing far better than most people in late 30s if you have a 175K RRSP.

[firebug]

Originally Posted by Sylvanfan

I have a 71 year old and 69 year old employees who both told me they need to work three more years, and neither guy is very proficient with a computer.

I actually managed to get rid of all my non mortgage debt, and increase my RRSP contributions by 40% last year. Granted a late 30's person like me saving under 15k in a portfolio that only is worth about 175 is still woefully pitiful. To retire poor I should have 300 and be saving 25 a year...but I feel much more optimistic today than I did 12 months ago, that I can die as a part time employee not like the two guys I mentioned at the start of my post.

Assuming your portfolio is tax sheltered
PV=175; PMT=15; I/Y=8%; N=25
CPT FV=
2,295.

Now assuming inflation of 2% that $2.3MM would equal $1.4MM in today's dollars and an annual gross income of about $70k in 25 years (in 2014 dollars - assuming 5% withdrawal rate). Hardly retiring 'poor'.

Now work for another 30 years (instead of 25) and you'd have another million dollars or get an average return of 9% (instead of 8%) and you'd have an equivalent income of 85k in 25 years.

Your 'retiring poor' assumption:
3.8MM in 25 years (at 8%); annual income of ~$118k (in 2014 dollars).

[Calgary14]

Originally Posted by Sylvanfan

I have a 71 year old and 69 year old employees who both told me they need to work three more years, and neither guy is very proficient with a computer.

I actually managed to get rid of all my non mortgage debt, and increase my RRSP contributions by 40% last year. Granted a late 30's person like me saving under 15k in a portfolio that only is worth about 175 is still woefully pitiful. To retire poor I should have 300 and be saving 25 a year...but I feel much more optimistic today than I did 12 months ago, that I can die as a part time employee not like the two guys I mentioned at the start of my post.

Just curious, what type of industry has employees that are 69 and 71?

[GP_Matt]

Drafting I think.

[Calgary14]

Originally Posted by GP_Matt

Drafting I think.

Interesting - good for them

[Sylvanfan]

They work in the drafting department, but there are other guys in the company who are past 65 still working. Theres an Ironworker who's 68 I think who just had a knee replacement still going. I think there are still a few 65+ guys in the shop. It's not like they were hired last year, these are long tenured employees.

It's not like you can force people to leave because they're old these days. Probably a few folks who panicked in the recession and messed up their retirement.

[Calgary14]

Originally Posted by Sylvanfan

They work in the drafting department, but there are other guys in the company who are past 65 still working. Theres an Ironworker who's 68 I think who just had a knee replacement still going. I think there are still a few 65+ guys in the shop. It's not like they were hired last year, these are long tenured employees.

It's not like you can force people to leave because they're old these days. Probably a few folks who panicked in the recession and messed up their retirement.

Wow. Good for them. Personally I have absolutely no plans to work that long but to each their own

[Slava]

Wow, I wouldn't say good for them at all. I mean it's good that they still can work obviously, but I have a feeling that given the choice they wouldn't be. Specifically the iron worker with a knee replacement probably wishes he was done.

[Azure]

If you love what you do, what exactly is the problem with working till you're 70?

[V]

Apparently with our new LAPP rules we have to work until we're 60 if we want the full pension.

[Slava]

Originally Posted by Azure

If you love what you do, what exactly is the problem with working till you're 70?

I don't mean my comment to suggest otherwise. As I get older I more and more think I might never retire fully. I just wonder how much loving what you do is taking place there and how much is having no choixce , particularly with a knee replacement and physical work.

[Mr.Coffee]

If I am 70 and have to get up and go to work and listen to some ass hat manager, I'll probably just call it a day and wander into Deerfoot.

[Flash Walken]

Originally Posted by Slava

Wow, I wouldn't say good for them at all. I mean it's good that they still can work obviously, but I have a feeling that given the choice they wouldn't be. Specifically the iron worker with a knee replacement probably wishes he was done.

I wouldn't be so sure of that.

Some grumble and say that, but for a lot of these guys who have been showing up at the same place for at the same time with the same guys for 30 years, they are as comfortable at work as they are anywhere else.

It's tough to imagine I guess from an office environment, but these in-house machining or tooling operations, pre-fab stuff, heat treating, whatever, are static work environments by and large. Some of those old farts come in to work simply because they know they can do it better than their replacement. For some of the technical guys, machinists, I'm sure that's part of it.

[missdpuck]

I work with a couple of letter carriers who can barely walk. They actually fear that if they retire, they will drop dead a few days later.

That's pretty much what happened to several who've retired over the past few years, and they were a bit younger and in better shape than these guys.

I've been working with basically the same people for years. They know me better than anyone; there's comfort in knowing who likes you and who doesn't. We have a grudging acceptance of each other. Some of us are friends.

Most of my friends are/were people outside of work. They were musicians and IT who didn't stay around here for very long, for the most part.

The people at work are still there. They may think South Florida sucks, but they're not going anywhere. Like them or not, there's comfort in knowing what to expect lol.

[Slava]

Originally Posted by Flash Walken

I wouldn't be so sure of that.

Some grumble and say that, but for a lot of these guys who have been showing up at the same place for at the same time with the same guys for 30 years, they are as comfortable at work as they are anywhere else.

It's tough to imagine I guess from an office environment, but these in-house machining or tooling operations, pre-fab stuff, heat treating, whatever, are static work environments by and large. Some of those old farts come in to work simply because they know they can do it better than their replacement. For some of the technical guys, machinists, I'm sure that's part of it.

It's hard to say. There are some for sure, and I have clients in that exact position where they keep working for the exact reason you describe. If I was to bet though I would say it's just as often that they've been working hard saving money for say 30 years. To all of a sudden stop saving and start drawing from their savings is a huge psychological shift. I think it's incredibly difficult for some people to make that shift and as a result they don't end up retiring until they have no other option.

I also think that for blue collar workers this reality comes a lot sooner, depending on the exact nature of their work. It's just plain hard on the body to do some of these jobs for 30-40 years, and I feel bad for people who have to grind it out at that point.

[GP_Matt]

We have a guy in our office who comes in at 5 in the morning every day to avoid suspicion from his wife when he leaves similarly early in the summer for a golf game. He is old enough and should be financially able to retire comfortably but is afraid that if he does his wife won't allow him to go golfing and he will have no ready built lie to get out of the house.
(He actually keeps his clubs in the office year round to avoid suspicion)

[Superflyer]

I know people that have 6 -8 week of vacation time each year from being with the same company for many years. They say that is enough and more than that (full year ie. retirement) they would go crazy. They like the job and take the 2 months off through out the year and they enjoy life. They are in their late 60's early 70's.

[darklord700]

I have 7 weeks right now and it's getting expensive to have days off. I don't want to sound like a loser and tell people I just do staycation aka sitting at home with nothing to do. But to actually go anywhere is $200 a night for accomodation for a family of 4.

[fundmark19]

Originally Posted by darklord700

I have 7 weeks right now and it's getting expensive to have days off. I don't want to sound like a looser and tell people I just do staycation aka sitting at home with nothing to do. But to actually go anywhere is $200 a night for accomodation for a family of 4.

Go camping? It is like 30 bucks a night