Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
ER in Eastern Canada
Old 08-02-2006, 08:42 AM   #1
Confused about dryer sheets
 
Join Date: Aug 2006
Posts: 5
ER in Eastern Canada

Hi,
I plan to retire in less than a year at age 55, with an indexed, defined benefit pension of $3000 per month (after income taxes, medical, dental and life insurance deductions). My wife and I plan to live modestly in a paid for house in rural New Brunswick, Canada. We have no debt except a monthly $375 car payment. I think we can manage on $3000 per month, but I'm still worrying about it all the time.

Are there any retirees on the Forum, especially Canadians, willing to offer their opinions or personal retirement experiences, to reassure me or cause me to worry even more?
Thanks
Maritimeboy
__________________

__________________
Maritimeboy is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: ER in Eastern Canada
Old 08-02-2006, 08:56 AM   #2
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,563
Re: ER in Eastern Canada

Welcome to the board, MTBoy.
Quote:
Originally Posted by Maritimeboy
I plan to retire in less than a year at age 55, with an indexed, defined benefit pension of $3000 per month (after income taxes, medical, dental and life insurance deductions). My wife and I plan to live modestly in a paid for house in rural New Brunswick, Canada. We have no debt except a monthly $375 car payment. I think we can manage on $3000 per month, but I'm still worrying about it all the time.
A number of American ERs are making it on about $2000/month, and they're including all the things that you're deducting. It's not for everyone but enough people are making it that I think you'll do fine... especially if that pension is indexed to inflation.

Quote:
Originally Posted by Maritimeboy
Are there any retirees on the Forum, especially Canadians, willing to offer their opinions or personal retirement experiences, to reassure me or cause me to worry even more?
It doesn't matter what I think; perhaps it's better to worry constructively. Track your expenses and put your retirement plans into FIRECalc. Then tweak the plans and see how it changes your success rate. At first you'll discover a number of errors and the results may be pretty discouraging, but as you continue to analyze your expenses and your spending plans you'll realize that you have everything covered... or you'll know exactly what you need to do to make up the difference and enjoy life.
__________________

__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: ER in Eastern Canada
Old 08-02-2006, 09:18 AM   #3
Full time employment: Posting here.
bruce1's Avatar
 
Join Date: Aug 2004
Location: Hagersville
Posts: 793
Re: ER in Eastern Canada

Hello and Welcome

I am planning a similar thing next year with slightly less pension but other assets to make up the difference and I will be 53 or 54. Could work another year or two to bring up the pension to just over 3K but probably not. I am in rural southern Ontario and from the sounds of it you and I may have the same employer. Check your after retirement dental and compare it to your* present plan. you may find things that are not covered post retirement as the plans are slightly different.

Have you tracked expenses? If not spend the next three to six months doing so. What expenses will stop when you retire? I will no longer have a commute that is costing me in excess of $300 a month. Are you planning any new expenses? Do a projected post retirement budget now and modify it as you track expenses.

You have probably looked at all this but those are some of the things I did.

I think there is 1 to 1.5 percent slippage in the indexing when compared to actual inflation on the items most used by a normal person.

Good Luck and have fun.

Bruce
__________________
I wish I was half as good as my dog thinks I am!
bruce1 is offline   Reply With Quote
Re: ER in Eastern Canada
Old 08-02-2006, 10:21 AM   #4
Confused about dryer sheets
 
Join Date: Aug 2006
Posts: 5
Re: ER in Eastern Canada

Thanks for your response, Nords.* I guess you're saying ER on $3000 per month is possible, depending on expenses, because some people have successfully retired on that amount - or even less. I need to take a look at expenses and remain hopeful!
Maritimeboy
__________________
Maritimeboy is offline   Reply With Quote
Re: ER in Eastern Canada
Old 08-02-2006, 10:42 AM   #5
Confused about dryer sheets
 
Join Date: Aug 2006
Posts: 5
Re: ER in Eastern Canada

Hi Bruce1,
* * *It seems our situations and plans are somewhat similar, and it is possible we have the same employer. You're more scientific in your planning than I am, because you've actually tracked expenses while I've only done mental calculations of expenses. I suppose I'm so determined to retire at 55 that I tell myself we will manage on $3000 per month when I retire because we'll have to! We don't have any unusual expenses, so it's not quite a blind leap of faith. Thanks for replying and good luck.
* * I'm hoping someone with similar circumstances who has already retired will comment from a position of experience.
Thanks,
Maritimeboy
__________________
Maritimeboy is offline   Reply With Quote
Re: ER in Eastern Canada
Old 08-02-2006, 10:46 AM   #6
Recycles dryer sheets
 
Join Date: Jun 2006
Posts: 473
Re: ER in Eastern Canada

Quote:
Originally Posted by Maritimeboy
I suppose I'm so determined to retire at 55 that I tell myself we will manage on $3000 per month when I retire because we'll have to! We don't have any unusual expenses, so it's not quite a blind leap of faith.
If you ask around this forum, you may find that assuming that you can live on a certain amount of money without adding up your expenses first can be a little risky. "I spent HOW much last year??* " is not an unheard of reaction from those who do the numbers for the first time in a long time.
__________________
Scrooge is offline   Reply With Quote
Re: ER in Eastern Canada
Old 08-02-2006, 11:16 AM   #7
Full time employment: Posting here.
bruce1's Avatar
 
Join Date: Aug 2004
Location: Hagersville
Posts: 793
Re: ER in Eastern Canada

Hello

I know many both retired and w@rking that manage on less than $3000. I am meeting necessities on well under 2K now. If you are determined you will find a way.

Bruce
__________________
I wish I was half as good as my dog thinks I am!
bruce1 is offline   Reply With Quote
Re: ER in Eastern Canada
Old 08-02-2006, 12:08 PM   #8
Confused about dryer sheets
 
Join Date: Aug 2006
Posts: 5
Re: ER in Eastern Canada

Hi,
* * There seems to be a consensus among the forum members who have replied to my post so far. I need to track my expenses for a few months before retirement to (hopefully) show we can live on $3000 per month - and if so I would likely worry less about ER.* I will have to force myself to start tracking expenses, because it seems as if it must be a pain to do it.
Thanks for the advice.
Maritimeboy
__________________
Maritimeboy is offline   Reply With Quote
Re: ER in Eastern Canada
Old 08-02-2006, 12:17 PM   #9
Confused about dryer sheets
 
Join Date: Aug 2006
Posts: 5
Re: ER in Eastern Canada

Bruce1,
* * * Thanks for saying you actually know people, including retirees, who manage on $3000. That does, of course, encourage me because I want to be convinced!! I'm still hoping that there are some readers of this forum who fit that category who will wade in with their experiences.
Maritimeboy
__________________
Maritimeboy is offline   Reply With Quote
Re: ER in Eastern Canada
Old 08-02-2006, 12:31 PM   #10
Full time employment: Posting here.
 
Join Date: Feb 2004
Location: Okanagan Valley
Posts: 797
Re: ER in Eastern Canada

Quote:
Originally Posted by Maritimeboy
Hi,
* * There seems to be a consensus among the forum members who have replied to my post so far. I need to track my expenses for a few months before retirement to (hopefully) show we can live on $3000 per month - and if so I would likely worry less about ER.* I will have to force myself to start tracking expenses, because it seems as if it must be a pain to do it.
Thanks for the advice.
Maritimeboy
It is good business to know where your expenses go and how much they add up to each month. It takes a good 6 months of spending (and preferably a year to get a full cycle of your expenses that will vary according to season) to get a good feel for what expenses are. Use a spreadsheet or software such as Quicken or MS Money to track them.

You don't necessarily have to know where every dollar goes, but you do need to know what are the fixed expenses, e.g. how much do you use in cash each month (for food, household expenses, personal hygiene), how much are your utility bills each month, and gasoline. *Don't forget to factor in monthly equivalent of annual insurance payments (life, house, auto) and property taxes. *Once you know the difference between $3000 and fixed, then you can see where you can best allocate the rest of your expenses (travel, clothing, entertainment, gift, an allowance for significant purchases like appliances every 15 years or so, home repair, a replacement vehicle every 10 years or so and a new roof every 20 years or so).

You should also visit the CPP page on the gov'ts website and obtain an estimate of the CPP payments you will get to supplement your DB pension at 65 (or at 60 on a discounted basis) and then OAS at 65. *You haven't said whether your wife has worked and is entitled to CPP or not, but that would add more income. She will also get OAS at 65 regardless of whether she worked or not. *There is a raging debate on whether to take CPP at 60 or 65, but my view is that a bird in the hand is worth 2 in the bush. *I will take CPP at 60 (3 yrs from now). *You can also income split CPP equally between you and your wife.

Personally, I believe $3000/mo (net) is a bit tight but many couples live on less. And it will increase as you collect CPP and OAS. * Additionally, there is nothing wrong with some part time work from time to time to supplement your needs. Retirement isn't necessarily going from a 40-50 hour work week to 0 hours. *It is about having choices to now do what you want. *Doing 10-15 hrs a week on a seasonal basis isn't necessarily a bad thing. I can think of a lot of things I would enjoy doing 10-15 hrs a week.....even at $10/hr too.

Add: I am a retired Canadian in Alberta
__________________
AltaRed is offline   Reply With Quote
Re: ER in Eastern Canada
Old 08-03-2006, 09:08 PM   #11
Recycles dryer sheets
 
Join Date: Feb 2004
Posts: 178
Re: ER in Eastern Canada

While tracking your expenses for the better part of a year is a good idea, I expect you have some idea already about how much you're spending. If you're already in the house you plan to retire to and savings aren't rising or falling much over the course of a year (and you're not running up credit cards or a line of credit), then you're spending your take home pay. You get paycheques with that number on it.

Is it more or less than $3000 in a month?
__________________
I'd rather be sailing.
nfs is offline   Reply With Quote
Re: ER in Eastern Canada
Old 08-05-2006, 03:45 PM   #12
Confused about dryer sheets
 
Join Date: Mar 2004
Posts: 3
Re: ER in Eastern Canada

Yes you can retire on $3000 a month. But the question is do you want to! Decide what you want to do in retirement life and then see if $3k will cut it. I am a Canadian and find that to live the life I had before retirement takes much more than $3k a month.
__________________

__________________
duke6979 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Living in Canada and Medicare Rob Health and Early Retirement 10 05-01-2007 04:44 AM
Living in Canada and Medicare Rob Life after FIRE 9 03-16-2007 06:13 AM
HAPPY CANADA DAY bruce1 Other topics 12 07-03-2005 03:16 PM
retire to Canada oops terrymac Hi, I am... 23 06-06-2005 10:23 PM
Prescription Drugs from Canada fln FIRE and Money 6 01-30-2005 04:07 PM

 

 
All times are GMT -6. The time now is 02:50 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.