- It was fun making those retirement videos that we've just done on Youtube - Yes it was
and you know what we had some really great comments from people didn't we - It did and
it brought up a lot of other topics which we hadn't considered covering -That's true yes
- And so it made us think a little bit more about our retirement about the time leading up to it and
you came up with a really good idea - yes which I thought we should talk about Retirement Myths
- and there are plenty of those going around so what was the the first one that you came up with
the the the biggie the number one myth that we grew up hearing all the time
- was do you need a million dollars - well it would be pretty good if we had a million dollars
it would, do you need a million dollars to retire comfortably and the answer is - no
we're living proof - or you could say do we have a million dollars Norm - well don't think so
- and we're managing just great - so where did that myth come around from - I think it's something that
we grew up with it didn't we - it was this whole freedom 55 thing there was
mutual funds being advertised by banks - everywhere you looked - institutions and of course they wanted you money
they wanted your money to put into their investments so then they can make money
and this one million dollar thing seemed to be
something that kept people saving and really when we started breaking down our finances in
retirement you, don't need a million dollars - no you don't - we think people are forgetting because
there is fear-mongering around government pensions as to whether they will be there for when you retire
that's a crystal ball that nobody can tell but at the moment we're seeing that the average
government pension certainly in Canada
can be somewhere around a thousand dollars - from the government - yeah we actually get three
levels of pension in Canada but if you just take a thousand dollars for example
how much capital do you think you would need to generate a thousand a month or twelve thousand a
year - you would actually need a lot of money and - I thought you're going to get your calculator out Tina
- with the help of a previous calculator you would need around 300,000
at four percent that would give you 12 000 a year - so that's kind of the four percent on the F.I.R.E. system
which we were discussing previously so 4 percent rule on capital
you've got 300,000 would give you your 1,000. well the government's going to give you
that - the government is giving that to you, you don't need
to have that 300,000 extra - so if you take the myth of one million dollars you can instantly knock
say somewhere around 300,000 off so now you're down to 700,000 - which is pretty substantial
yes you do need money you do need an amount in our case we sold our house to get an amount you
do need an amount but you don't by any means need the million dollar that everybody thinks they need
- because the other thing is you when you do retire you stop buying work clothes - that's
true - you stop driving miles to to get to your job - yeah and you don't have all the lunches
and coffees and all the ongoing expenditure - so your income naturally drops yeah and so
basically this whole million dollar thing was more of an advertising marketing campaign for
financial institutions - but it was a pretty good myth though wasn't it - it was so we've we've
myth busted that one - that one yeah we've knocked that for six yes - so what was number two Tina
- number two is a real biggie too and that is nearly everybody thinks you have to retire
at 65 that you have to wait till you're 65 and in the case of Canada that's when
the C.P.P. you're entitled to get that but we have another hidden little talent on that don't we
- well the the proviso with this retiring at 65 that's how it's been for all our life and our
parents life but unfortunately our children and people who are one year younger than Tina
- me I just scraped in - will have to go to 67. - is a shame that's all already like that in the U.K.
but we do have C.P.P. in Canada which is what you contribute from your pay check to the government
and your employer kicks in a little bit as well so that's the Canada Pension Plan it's almost
mandatory for employees to pay into that - but the beauty is in Canada we can draw that at 60.
- that is phenomenal - which is so huge so that's why we're saying no it's a big myth you don't
have to wait till you're 65 to retire because you can actually claim it at 60 and that is huge
- it really is and people in the U.S. can claim that as well now it means that in your lifetime you're
going to get less money than if you waited to 65. - right - but the break-even point between
waiting and not waiting you would have to draw it for quite a few years and we
we're being a baby boom generation thought to ourselves there's absolutely no guarantee
we're going to get to our parents age - no and they kind of lived till they were 90's
- we're the biggest baby boom population bulge that really people have experimented on with the
packaged food industry and anyway don't get us started on that one Tina - another important thing
to do with that is there are other things that you can get you can get income dividend income from
stocks and things like that that can help as well - it will and the other thing that we were aware of
touching back to that population boom is health will run out eventually
and for some unfortunate people health runs out before 60. - that's true - and there are
chronic illnesses and diseases which do affect your mobility and your ability to enjoy life so
we decided to retire at 55 because we were healthy and we'd seen some older friends of ours who
- had more health issues didn't they - yeah - and they were kind of waiting longer to retire and
we thought we didn't want that to happen - not at all so we decided retire at 55 we funded
our own retirement, we got to 60 we've both drawn the C.P.P. payment which has helped - which is great
- and with dividend income it's working it's no big deal so the other thing is
myth number three retirement and - life stops - oh no - this is such a big thing when people are
still working and even though lots of people enjoy their jobs like I enjoyed my job you did until a
certain point - I enjoyed my job until it stopped being fun then I retired - but even people who
they still think they enjoy doing their job they do and they have this big fear they think oh
when I retire I don't want to retire because life is going to stop
- well it's a loss of identity if you're a butcher that's what defines you
somebody says what do you do for a living I'm a butcher but when you retire you kind of
stripped away from that sort of mask to wear if you like, so we've found that
we're busier in retirement than we've ever been - we kind of looked at it of like turning the page
in a complete new chapter in our life didn't we it was almost like a rebirth of things - it really was
- we have now started doing things for ourselves instead of for an employer haven't we
- it's like a second childhood but with money and no age restrictions
- most of you know we've been down here now for five years we've done a lot
we travel, we swim, we walk, we do Youtube, - photography and there's volunteering
- there's so much that people can do - you can do a side hustle it doesn't mean to say you're working
- no - we have stock photography and stock video which is our side hustle and it's been great for
the last 15 years -yeah - not so much at the moment with the covert crisis and restricted advertising budgets
- that's true - but we are keeping fit we go for walks -yeah - we're planning travel for the future - we are and
we're having to look at travel in a different way aren't we with all travel restrictions and
things - we are and was starting to love our own province even more and we've been traveling
throughout Ontario which is a absolutely massive province - in fact sometimes I think we're so busy
I wonder how we managed to go to work and do all this stuff well - I know it's like we wake up early
in the morning as well to get down - yeah because we have so much to do and then of course we've got
to get it all done by happy hour at 4 O'clock - absolutely every day that beer times calling - so we
want everybody to really know that retirement is great and it's not to be feared - no and you look at
it as if it's a totally new thing in your life - it really is a challenge - don't be scared it is great
isn't it - and retirement is different for everybody you don't have to travel like we have you
could volunteer you could do things in your community you could learn new skills - absolutely a
lot of people go back to school do online courses do all sorts of things - and i think just
we only had three retirement myths but maybe we'll give a bonus here's number four
thinking on the fly that you can still save you can still invest money - o yes - you can still if you
have surplus income then invest it you're not just spending money you can be making it as
well in retirement - and actually then you can take advantage of all the things like
senior days and all this and cheaper travel for well when the trains are running
cheap rail - yes there are lots of stores in Canada give seniors discounts I'm not sure why - but they do
well i guess they do it to encourage - and we will take advantage of it as well
when we can remember what day it is because there all different - yeah and at the moment with this
corona virus everything's blurring isn't it we almost don't know one day of the week from the weekend
do we - well the only time we know it's Saturday is because we post a Youtube video
- so we have to get a little bit focused - you have no idea the pressure we're
under on a Friday to produce a video, - so here we are on Friday again - yeah but we've got to wrap it
up because it's oh - oh it's getting near happy hour time
- so thanks for watching everybody as usual we really appreciate your support
- absolutely and thanks to all the new subscribers that are coming along it's great - it's fantastic
- and all the comments that we get and we do appreciate it don't we - we're so honoured by everybody who
watches our videos and would just like to say goodbye - yeah goodbye and stay safe and keep well
will do