How much money do you need to retire?

Nederlager · #1 08-12-2017, 08:29 PM

Was reading another post below and guys are retiring at 52 and 54 years old and say they are financially all set after working 32 years.

Do you all only plan on living 2 more years, or what?

How much money is needed to retire?
How are you all retiring so early?

Guess, I was in the front of the dummy line when they were handing out brains.

spoiledsaskhunter · #2 08-12-2017, 08:58 PM

don't know how everyone else got there but....
you've gotta be debt free.
you've gotta have an idea of what it will cost you to live (I've found out it's less than when I was making payments on debt and raising kids)
i'm lucky and have a bit of company pension coming in
then you've gotta have enough money in investments to draw down monthly until you die.....err on the side of living until you're a hundred or so. anything left over can be left for the kids!

Arty · #3 08-12-2017, 09:00 PM

Quote:

Originally Posted by Nederlager

Was reading another post below and guys are retiring at 52 and 54 years old and say they are financially all set after working 32 years.

Do you all only plan on living 2 more years, or what?

How much money is needed to retire?
How are you all retiring so early?

Guess, I was in the front of the dummy line when they were handing out brains.

How much? As much as you can save and have invested by the time they punt you out.

Most employers will take the cheaper and stronger younger guys over experienced older guys when they can. Never mind that 30 years of experience might have some intrinsic value. By the time you hit 50, whether blue- or white-collar, the HR dept is trying to cook up ways to get you into the chute out the back door. It gets worse with every year, and different companies, trades or professions are worse than others that way.

So you usually don't choose to retire, retirement chooses you. So you better have all your investments lined up and paying off by then.

And the more debt you have at any time in life, then worse it is. That's why it's such a BAD idea to buy stuff all the time with every paycheque, buy too much stuff, buy stuff you don't need, buy something because your neighbor or buddy at work did, or buy anything on credit.

The world is running tighter now than it has been since the 1920's. There's no wiggle-room anymore in wages or in the financial world, to let you make mistakes and recover. Off-shoring, outsourcing, temporary contracts, extreme education tuition, and fees and charges which nickle-and-dime you to death are typical now. Both the stock markets and housing markets are insanely overpriced too, so the big gains typical of the 1960's are history.

If you have a chance to work and save at any age, or keep your job and/or trade going in later years, you better do it. Don't try and calculate what you think you might need. Just save all of it, stay healthy and strong as possible, and keep going till you can't anymore. That'll be retirement.

270person · #4 08-12-2017, 09:01 PM

20-25 years of retirement, hopefully. $ 50k per = $ 1,000,000.

Can't count on OAS and CPP still being around.

260 Rem · #5 08-12-2017, 09:46 PM

10% of your annual pay invested over 35 years in a "fund" that pays interest ... is a good start if you plan to retire at 60.... assuming no debt on retirement date. Mortgage paid. Vehicles paid. Count on CPP and OAS.

Trochu · #6 08-12-2017, 10:09 PM

There are retirement calculators out there, all depends on your debt, spending, investments, and initial principle.

Talking moose · #7 08-12-2017, 10:13 PM

Ccp check..... but what is oas? Old age security I presume but where/when/ how do you get that?

Bushrat · #8 08-12-2017, 10:21 PM

Quote:

Originally Posted by Nederlager

Was reading another post below and guys are retiring at 52 and 54 years old and say they are financially all set after working 32 years.

Do you all only plan on living 2 more years, or what?

How much money is needed to retire?
How are you all retiring so early?

Guess, I was in the front of the dummy line when they were handing out brains.

Don't feel to badly, you are in the majority. For every guy that has had six figure or plus yearly earnings from a big company, government or their own business able to retire early with company pensions or comfortable investment portfolios, there are at least 5 that don't. They just don't advertise it.

It isn't always about brains though they help. We all know there are lots of useless, stupid and lazy people that wind up with great jobs. There are also lots of smart hardworking talented people that can't get a break. Mostly it's about good guidance and encouragement starting when young at home, being steered in the right direction, being in the right place at the right time, being connected, recognizing opportunity if and when it appears then being good at playing the game if you find one are very advantageous. Everybody gets dealt a different hand of cards and different levels of ability to play them.

Weedy1 · #9 08-12-2017, 10:28 PM

Quote:

Originally Posted by Arty

Most employers will take the cheaper and stronger younger guys over experienced older guys when they can. Never mind that 30 years of experience might have some intrinsic value. By the time you hit 50, whether blue- or white-collar, the HR dept is trying to cook up ways to get you into the chute out the back door. It gets worse with every year, and different companies, trades or professions are worse than others that way.
So you usually don't choose to retire, retirement chooses you. So you better have all your investments lined up and paying off by then.

I don't agree. A well ran company will determine who are the money makers regardless of age. I do sweet FA and make my company 500 G's + every year. Honestly I could sit at home and pick lint from my belly button and post it on youtube under my employers account and they wouldn't give a rats ass about it, as long as I'm making a profit.Why can I do that? It's because I can solve the issue without even showing up, take my fair cut and leave my employer laughing all the way to the bank. I'm sorry but most 10 or 20 year guys simply can't do that.

Ken07AOVette · #10 08-12-2017, 10:29 PM

I'm thinking 600,000 and sell the house, live to a smaller one for the twilight years. That will push me will over the next 0.

Big Sky · #11 08-12-2017, 10:31 PM

Quote:

Originally Posted by Talking moose

Ccp check..... but what is oas? Old age security I presume but where/when/ how do you get that?

Everything a Moose would want to know.

https://www.canada.ca/en/services/be...-security.html

CanuckShooter · #12 08-12-2017, 10:33 PM

Quote:

Originally Posted by Talking moose

Ccp check..... but what is oas? Old age security I presume but where/when/ how do you get that?

OAS you get at 65 years of age, not before.

ex811 · #13 08-12-2017, 10:47 PM

How much money do you need to retire...Allot

Start saving and investing from your first job onwards But don't miss out on life...enjoy your paychecks the best you can.
After all, you might not make it to retirement age.

79ford · #14 08-12-2017, 10:48 PM

Not too sure, probably a million bucks. The interest rates being soo low there is no hope in heck savings will grow on bonds or gic's etc.

You need a million bucks in some lousy corporate bond paying 3% to get a meager 30k you would have to pay tax on.

Nederlager · #15 08-12-2017, 10:58 PM

Quote:

Originally Posted by Bushrat

Don't feel to badly, you are in the majority. For every guy that has had six figure or plus yearly earnings from a big company, government or their own business able to retire early with company pensions or comfortable investment portfolios, there are at least 5 that don't. They just don't advertise it.

It isn't always about brains though they help. We all know there are lots of useless, stupid and lazy people that wind up with great jobs. There are also lots of smart hardworking talented people that can't get a break. Mostly it's about good guidance and encouragement starting when young at home, being steered in the right direction, being in the right place at the right time, being connected, recognizing opportunity if and when it appears then being good at playing the game if you find one are very advantageous. Everybody gets dealt a different hand of cards and different levels of ability to play them.

Very kind and wise words. Thank you Bushrat. You are welcome at my campfire anytime.

Sask Bearman · #16 08-12-2017, 10:58 PM

Quote:

Originally Posted by 260 Rem

10% of your annual pay invested over 35 years in a "fund" that pays interest ... is a good start if you plan to retire at 60.... assuming no debt on retirement date. Mortgage paid. Vehicles paid. Count on CPP and OAS.

This is a good rule of thumb, but I would push the 10 percent higher to 15 percent with todays interest rates. Also, one must account for the fact that you may still want to buy the odd new truck or something after retirement. Better a little more than less.

brslk · #17 08-12-2017, 11:24 PM

I'll retire the day before my funeral.

Arty · #18 08-13-2017, 01:59 AM

Quote:

Originally Posted by Weedy1

[...]
It's because I can solve the issue without even showing up, take my fair cut and leave my employer laughing all the way to the bank. I'm sorry but most 10 or 20 year guys simply can't do that.

If they had their stuff together, they would be training a cheaper guy to do just that - maybe even trying it with some mid-east immigrant they could kick around at will and pay a dime on the dollar for. A typical miserable trick is to force experienced workers to train their cheap future replacement if they expect to get any of their decades worth of severance pay. Of course if the new guy doesn't work out and can't learn 30 years of your experience over the next 3 weeks, well there's a dozen in line behind him that will take the job.

Right across most industries, companies have cheapened down, commoditized and ignored much of what constitutes knowledge and ability. Much of the time, they get poorer product as a result, but hey, as long as they make the numbers and can drop the costs of a lifer by going contract, they'll just hold their noses and do it. That's how you get an entire continent hollowed out with jobs shipped overseas. It's worse in the US, because they had a lot more manufacturing and IT to start with.

Regardless of perceived value, both manufacturing and professional services companies will cheapen their operations down as much as possible. Particularly if you get a downturn in a cyclical industry, or an outsourcing trend starting in a very competitive one. By the time they realize they can't make the 500G's like before, they'll either attribute it to something else, just keep quiet about it, or fire a manager and tweak their business model a bit.

There's an amazing number of ways a company will shoot itself in the foot in the name of 'improvement'. And extremely few employees are allowed to become indispensable either.

Norwest Alta · #19 08-13-2017, 02:23 AM

Quote:

Originally Posted by Talking moose

Ccp check..... but what is oas? Old age security I presume but where/when/ how do you get that?

Old age security. We don't have to worry about it because it'll be all spent by the old farts. Or that's what my accountant says anyways.

I'm close to retirement at 45 yo. Only have to work 200hrs a month. Much better then the 300 hrs last month. It's kind of a bonus. Less I work less I smoke so it's like a double payday.

TBark · #20 08-13-2017, 04:49 AM

$1.25 ish,
And ya, that don't mean squat if u owe a big % of that in debt.
3-5 years left to get there for myself, hoping.

TBark

Trap Shy · #21 08-13-2017, 06:01 AM

Have all your ducks lined up and ready to shoot than you or your wife gets sick and the sickness cost you a fortune and everything changes . I know you can't live looking for a sickness to wipe you out but it happens a lot .

JohninAB · #22 08-13-2017, 06:42 AM

How much you need will depend solely on your retirement year plans.

Some may get away with $1 million others need $3 million and some may need $500 thousand.

Lifestyle and health will be the driver.

As mentioned earlier, lots of good info on the web.

farmerbrown · #23 08-13-2017, 07:25 AM

Quote:

Originally Posted by Nederlager

Was reading another post below and guys are retiring at 52 and 54 years old and say they are financially all set after working 32 years.

Do you all only plan on living 2 more years, or what?

How much money is needed to retire?
How are you all retiring so early?

Guess, I was in the front of the dummy line when they were handing out brains.

As you read from the other thread I retired at 52. The wife and I set a goal to have our three quarters of land, buildings, machinery, vehicles, toys etc. paid for and two million in liquid invested assets. We had to make our own pension because there was no "Mother Ship" to look after our retirement plans.

That's what we decided would be necessary to be able to afford a long retirement and do what we wanted to do without restrictions. We also wanted to retire when we were still physically capable of doing what we wanted to do.

Managed to get to the goal at 52 through lots of hard work, long hours, risk taking and a very understanding wife.

We don't regret making the sacrifices that were necessary to get to where we wanted to be. Also I recognized when to shut it down. I have been enjoying retirement now for 10 years and wouldn't change a thing.

JustBen · #24 08-13-2017, 07:35 AM

The biggest thing is to start early.

I'm on track to retire somewhere between 45 and 50. If I'm liking work, maybe I'll work to 55.

My current plan is to have about 2 million in liquid assets - if I can pull out 3-4% in dividends and growth every year, I'll be laughing.

The only reason I can do this is that I started tucking money away with my first pay check. You can't miss that money if you've never had it.

elkhunter11 · #25 08-13-2017, 07:44 AM

The number one factor, is whether you have a company pension, and what type of a pension it is. If you have a defined benefit plan, paying 1.5-2% of your salary per year of service, and you have 25-35 years of service, you are in the minority, but those plans do still exist. Having a pension of $30- $70k is a huge head start, and if the company also has health benefits for retirees, that also helps a great deal. Other pension plans are defined contribution, and they don't guarantee a set amount to be paid out annually. Do you have RRSPs ? Remember that you are going to pay tax to draw them out, so they are not the same as money in a savings account . If you draw them out over 15 years though, the tax penalty is not nearly so great. Is your home paid for? Are you going to sell it and relocate? What are property prices like where you intend to move? If you can sell your home for a great deal more than what you are going to pay, that is a huge head start to retirement. What other investments do you have? Do you plan on doing some part time work?
I know people that paid off their mortgage and bought RRSPs, that are getting by on a company pension, although their lifestyle has changed, and other people that spent their money on vacations and toys instead, that can't afford to retire despite having the same pension and years of service. Other people invested in property, or in the markets as well as having a good pension, and they are living quite comfortably.
Now if there is no company pension plan, or if you don't have enough years of service, you are going to need a lot more cash to retire.

With no company pension, and no other income, I would want a minimum of $1 million to retire at 55, and that is owning my own home. Even then , with low interest rates, you are not going to have a lot of extra to go around. If you have to rent, or if you have a mortgage, things will be tough with only a million.

nube · #26 08-13-2017, 08:00 AM

I think the ones that plan have a better chance to retire with a good amount than those that don't or the ones that have been dealt a rough hand in life.
Yu can always make a choice as well. I have seen lots of people making low incomes all their lives trying to get by and barely making it to work into their late 60's or 70's or more. There are also those types who turn things around and change jobs or do extras to make a few extra bucks to store away.

I started with RRSP and other options at age 15 to put money away for retirement. Most of that was used up when I was 23 to buy my first house which I then spent the next 14 years working very hard to pay off. I also learned to not pay interest and make money grow.
I invested in a side business and now have a few things going other than my regular job that makes me money. The little amount the spouse brings in every month pays for a couple bills and food on the table. It all helps!

Always look for opportunity to expand your money. I have done a lot of things to make my money grow and over time it can put you in a position that you really don't have to worry about money if you make some good choices and meet the right people.

What a person needs for retirement is a personal number. For me it's all about being able to do what I want when I want and when I feel like I have that number I am going to go have some fun and enjoy the glory years!

ReconWilly · #27 08-13-2017, 08:50 AM

You don't need a million dollars to do nothing, hell, look at my cousin he's broke, don't do $#&!.

https://m.youtube.com/watch?v=4lmW2tZP2kU

YAFORDDIESEL · #28 08-13-2017, 08:51 AM

answer: 500,000 cdn dollars per person.
CPP an OPP will be 20percent of your monthly income

review an tell me i'm correct!!!

bat119 · #29 08-13-2017, 09:29 AM

How much you need to retire depends on your needs and age.

This calculator will give you an accurate estimate based on your situation.

Google -- Canadian Retirement Income Calculator - General Information
(The site is encrypted I can't paste the address)

CMichaud · #30 08-13-2017, 09:56 AM

Went through this exercise recently.

The amount you need at retirement will vary by many things but the key take aways I had were....

1. How much do I think I will need to maintain my standard of living - accounting for inflation

2. How long do I think I will live for (age 90 seems a hopeful guess) and at what age will I need to start drawing it down.

3. How long will I have my money invested (and thus growing) prior to starting to draw down on it. Even once you start drawing it down, your investments will continue to earn so a calculator like those suggested above are very helpful