Retirement planning

Splinter said:
On this point, do you have a living annuity, or a life (guaranteed) annuity? The values will differ.

Edit: @TheOracle - your calculator is aimed at purchasing a living annuity, I assume?
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Guaranteed pension. Upon my death, my wife will get 75% of my pension until her death. If my wife passes away before me, I will continue getting the full pension till I pas away.
 
Splinter said:
I've been reading about retirement planners extending the horizon (length of time you are expected to live after you retire) more and more, but if say you retire at 61 that still takes you to 96. Based on all these celebrity deaths, early eighties seems to be a lotto win.

I don't think I will hit 90's for sure. Nor, I think, do I want to. Can your calculator allow you to put your own "horizon" number in?
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It's actually already there, there's a "Plan for your money to last until age" field, defaults to 95 but you can pull it down (min is 75, so it won't let you go too low and risk running out early). Fair point though, it was buried under "Adjust the assumptions" so easy to miss. Just moved it up so it's sitting right there on the page now, no need to expand anything. Thanks for flagging it.
 
geezer said:
Guaranteed pension. Upon my death, my wife will get 75% of my pension until her death. If my wife passes away before me, I will continue getting the full pension till I pas away.
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Ok. The value you got would be based on the annuity factor rates at the time, and they may have come down since. While you have a spouse guarantee, as the insurer gets to keep any remaining cash, once the policy holder (and beneficiaries) have passed, the rates are generally higher than what you can get using the 4% rule for a living annuity.
 
Splinter said:
On this point, do you have a living annuity, or a life (guaranteed) annuity? The values will differ.

Edit: @TheOracle - your calculator is aimed at purchasing a living annuity, I assume?
Click to expand...
Yep, spot on. The "will my money last" tab is built around a living annuity, your pot stays invested and you draw down from it, that's what's actually being simulated year by year with the run-dry age. The guaranteed/life annuity number next to it is just an indicative range for comparison, not a full simulation, since that's a quote from an insurer on the day rather than something you can model generically. So if Geezer's on a guaranteed annuity, that'd explain the gap, those pay out on completely different math (mortality pooling, rates on the day) rather than a safe-withdrawal-rate drawdown.
 
Thanks for sharing, my problem is I have to retire at 60 and honestly I will probably want to. The way its going now I will not get the figure I want, so traveling while working is no option and traveling after retirement is also not an option. My life after work will the life I live now hahaha.
 
Privateuser456 said:
Thanks for sharing, my problem is I have to retire at 60 and honestly I will probably want to. The way its going now I will not get the figure I want, so traveling while working is no option and traveling after retirement is also not an option. My life after work will the life I live now hahaha.
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You don't have to spend a fortune to win the Lotto ;)
 
Splinter said:
That's the thing. It keeps on changing in my head. And I'm naturally risk averse, so the thinking will most probably just remain thinking. But work is becoming a drag, and sometimes money isn't everything.
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Haha, are you me? Agree 100%.

Still a long way to 55 for me, so a lot of time to accumulate and think.
 
Many financial service companies provide excellent free information on retirement planning. The information is in the form of background documents, podcasts, etc. For example, Investonline has an upcoming Microsoft Teams Webinar, "Everything about Living Annuities" , Tues, 18/8/2026, 11:00 to 11:45 (What are they, how to invest in them, what income you will receive, tax & death issues). 10X and other companies also hold such webinars. If you can't join in, recordings are usually posted afterwards on their websites & Youtube. I have learned a lot from this free information. You can also join the companies' emailing lists to get notified of upcoming education events. If you are prepared to pay their fees, reputable financial advisors will assist you as well.
 
handyman007 said:
What's your formula for the magic number needed to retire?
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That’s more a question of your “need” than what’s needed to retire specifically.

Do you just want to live the life you live now and keep it going then the number isn’t all that high as a great many of your expenses should disappear.

If you have delusion many have that they’ll suddenly magically be rich when they retire and live a lavish life they never did before they retired…well that’s a very different equation.
 
Scooby_Doo said:
I am not a fan of it calculating your after tax value as if the full amount is an annuity. I have TSFA, Capital gains and annuities.

Rather leave it as before tax, or provide the option.
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Fair point, and thanks for flagging it. You're right that lumping everything through as if it's one big annuity isn't fair on TFSA or CGT-taxed money. Just pushed an update, there's now a toggle under "Adjust the assumptions" on the "Am I on track?" tab (the drawdown tab already had it) so you can switch your income figure to before tax and do your own math on the mix.
 
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