Trying to Decide When to go

[bruce1]

I am currently spending about $2500 monthly and am in Canada so medical is out of my hands. I have supplemental drug and dental that will continue in all scenarios.
Single and age 53. Home is free and clear no debt anywhere. I have about $350 Monthly income outside my J@b that would continue in retirement. I have a good emergency fund and 200K invested.


I have three Choices.

One - Keep on as currently working till Sept 2008 which is a four day week, ten hour day with a one hour commute each way. The evening commute is rotton frustrating and miserable.

Currently clearing $3700 a month no overtime no weekends. Bored to tears. No real pressure but no motivation to get up and come to work.

In Sept 2008 I will qualify for $2975 pension after tax.


Two - Leave in Apr 2007 at which time I would receive $2575 monthly or $400 less than Sept 2008.


Three - Go to a three day eight hour per day week. I would take a big hit pay wise and go down to clearing just under $2300 monthly but would be working three short days. I would have to commit myseklf to staying until Sept 2008 and then I would receive the same pension as if I had worked the next twenty months full time or $2975 clear monthly.


The extra money would be nice but I am finding it harder and harder to rise and shine in the morning. Do you think the shorter and less days would be enough to get me through?

Other adviceor ideas?

Bruce

 

[Andre1969]

The extra money would be nice but I am finding it harder and harder to rise and shine in the morning. Do you think the shorter and less days would be enough to get me through?

At a quick glance, the 8 hour/3 day workweek sounds like a nice compromise, but it just depends on your personality. In my case, if I were that close to being able to retire, I think working a 3 day week would still be just as aggravating. It might feel better at first, but as I adjust to it, I'll just resent the days that I am at the office all that much more.

Some people are better suited to gradually phasing work out, but I think I'm more of the type where I'd rather just get to the point I can quit totally, and "reset" myself. And then, if I decide at a later date that I want to do the W-word, I'll go job hunting.

I dunno...could you try going to the 3 day work week and then, if you find out that it's not what you thought it would be, go back to the 4 day/10 hour week? Or would you have to commit to the 3 day work week until the end of the line?

 

[Maritimer]

Bruce1, can you take leave without pay for 20 months, live on some of your $200K, and make yours and your employers pension contributions so you would retire with the full $2975 per month pension?

 

[bruce1]

Bruce1, can you take leave without pay for 20 months, live on some of your $200K, and make yours and your employers pension contributions so you would retire with the full $2975 per month pension?

I may be able get leave without pay for a year but I would have to have a good reason since we are short bodies at the present time due mainly to retirements earlier in the year. The people I work for are not stupid, just short sighted. They have done nothing to replace the people who retired last spring let alone plan for me not being there. They know that I reach full pension in 2008 and nobody stays after they reach full pension.

Maritimer
I am committed to the three day week if I start it and probably would adjust to it fairly quickly.

Some other part time employemnt for a few years after taking an early out and six months off would not be out of the question either.

Oh well time to do some stuff outside

thanks
Bruce

 

[Zipper]

Bruce, from your neighbour (London), if you can work til you are ~54 like I did, you should qualify for early CPP (-30%) at 60 without penalty.

Anything below that and you will exceed your 15% contributory period dropout provision. That's usually ~ 6 years.

I would check with CPP and see exactly when you can go and base your termination on that date.

And of course at 65 OAS kicks in.

 

[Canadian FIRE]

Bruce,

Leave in April 2007. If your adjusted pension covers your living costs of $2500/month and you have an extra 200K in the bank, plus CPP (at 60) and OAS (at 65), I think you have more than enough. As long as you don't plan on increasing your spending in retirement.

By the way is covered by that $2500/month? If there are work costs in there you might be able to live on less. Even without the pension that 200K would almost carry you all the way to 60 for your current costs.

Hope that helps,
CF

 

[bruce1]

Thanks for the input.

I think I am going to have a CPP penalty unless I work till 57 since I already have three low/no contribution years from early when I was in collage and yonderiing. I will check as it is a good thing to know.

Not too much in the way of work costs other than commuting at $425 month but half that will probably continue when I am reitred. Lunches/coffee are about $125 a month and probably will go down but I am not counting on it. Clothing will drop a little but not much.

I have asked our personnal department a few questions about my options and should hear back from them by the end of the week. WE will be having aretiremetn seminar in January and I am holding off on a decision till then but am gathering all the info I can.

Bruce

 

[kcowan]

Bruce the other thing you can do with the 3 day approach is to practice ER because you will have 4 days for you. If your employer is short-sighted and short-staffed, perhaps you can extract some additional concessions as well.

I would go for the full pension because you will then have a comfortable buffer in case of unforeseen events.