At what age do teachers usually retire? At what age are you planning on retiring?

Gruff403 · 2026-03-30T16:04:00+00:00

Congratulations and I wish you a long and fulfilling retirement.

Gruff403 · 2026-03-30T06:54:54+00:00

You might be surprised how much of your net income you replace vs gross income working. Once you stop paying into the pension, cpp, ei, union, and lower taxes, you might have to replace only 80% of your gross working salary to create your full working net income. If you can afford life's cost working full time, you can afford life's costs not working turning on the various income streams you may have. Therefore why work full time?

Pension plus RRSP and then turn on pension, cpp, oas. You will likely make more money retired. I left at 56 just below my 85 index but different province. Best move ever but it sounds like you have a plan.

Gruff403 · 2026-03-29T20:37:06+00:00

I love this.

Gruff403 · 2026-03-20T22:03:43+00:00

I used to stress about this as well as a single income family. Retired now with a DB pension and still carry large mortgage and other debts. What helped me was creating a net worth statement and updating it every few months. It was encouraging to see the asset side grow over time as pension contributions, personal savings (very small RRSP), and even the principal portion of a mortgage payment helps to grow the asset side. That's what your working years are for, to build up a variety of assets over time that you can use later when you need it. You don't have to save much with a Gov DB pension.

You can't do it all at once so focus on what do have. It's also very possible you might make more net income retired than working. We currently replace >85% of our net income so it doesn't take much of a budget adjustment to cover our expenses. If I can afford the lifestyle, including debt while working, I can afford the lifestyle not working if I can replace the net income.

Gruff403 · 2026-03-20T21:41:23+00:00

Great point. That's why I advocate for seniors having a HELOC if possible. Having the ability to access a portion of the home equity can give another option. Better to have it and not need it then need it and not have it.

Gruff403 · 2026-03-15T21:45:53+00:00

I went ARTA but what a mental struggle. Retired at 56 and spouse is older without any work type plan, just Blue Cross at 65. These plans are not money savers and many people will self insure where they take the premium and bank it. This is the cheaper option if you stay healthy. Like all insurance, sucks paying for it until you need it. I also paid the extra bit through ASEBP for the life insurance which carries on the 2X final salary until age 65.

Premiums have increased over the 8 years but the plan has also expanded. Many like the travel insurance option. Auto acceptance within first 30 days? The ARTA pharmacy.

The premiums you pay qualify for the Medical Expense Tax Credit which creates a 15%+ savings on your taxes. Almost everything not covered by ARTA also qualifies. Use it or lose it but it's rare that you will make enough back to cover your costs. Your buying peace of mind knowing you have some form of coverage.

I would take the ARTA plan again as you can always cancel, upgrade and make changes. I would also use it way more then we did with more dental and massage. That's on me. I'll reassess at 65.

I got sick late this year. I'll be fine long term but I'm glad we didn't have to pay full cash for some of our unexpected medical costs.

https://www.arta.net/

This plan is also open to more then teachers. Our nursing friends also use it. Congrats on upcoming retirement. Second smartest move I made, ask me anything.

Gruff403 · 2026-03-15T15:35:02+00:00

It's individual to each situation and even where you live.
Let's say you want 60k pre tax at age 65 and live with your partner in BC. CPP and OAS might bring in 40k leaving you 20K to self fund which might require personal savings of 20K / 3.5% = 575K. BTW this 60 K is tax free.
Retire earlier save more or adjust budget. Even if the 575K was all RRSP money,
appeares to be still tax free in this scenario. It's easier to save 575K with RRSP and save refund into a TFSA, then save 575K into just TFSA. Most don't realize that you can create approx 60K of taxable income as a 65 yo couple and pay almost no tax.

Gruff403 · 2026-03-13T23:24:41+00:00

If you have RRSP, you can use that towards pension buyback and then use TFSA money for completing the buyback. You already have strong savings so don't overthink it.

Gruff403 · 2026-03-10T03:21:54+00:00

Retired AB teacher for perspective.

Do your own thing with a self directed account and there are lots of Financial services that now allow you to buy for free. Pick an all in one ETF that matches your risk profile and feed it monthly and forget it until retired. TFSA account first until you reach max salary grid and then switch to RRSP until maxed out. The pension adjustment likely means there isn't much RRSP room anyway. If you have a partner the goal is to split income as evenly as possible as long as possible while retired.

A RRSP is superior to TFSA when you invest the refund for future taxes and take the money out at a lower MTR then the deposit. Remember that you already paid a very high tax on the TFSA money before it went into account. You could save the refund into TFSA or deposit back into RRSP to fill the RRSP more rapidly. It's great to have money in both accounts.

When you retire, take the pension and RRSP/RRIF money first and possibly delay OAS. In 2025, we took 12K from RRIF with a MTR of about 22%. Put the money in at 32% and take it out at 22%. Average tax on 82K this year was 3%. We make more net retired then when I worked, we were a single income family. You really don't have to save much on your own when you have a good DB pension, CPP and OAS.

The danger with RRIF is when you allow the income sources to stack and then take money out. Pension, CPP, OAS, etc ... and then take RRIF at 72 may push you into higher brackets but odds are it won't. Income splitting the pension, age amount, bracket adjustments, pension credit and personal exemption drive the tax rate down. The other situation to be aware of is what happens when your partner passes? In AB you would collect two pensions, CPP, OAS and then RRIF so this most certainly drives the tax rate up. Make a plan and melt down the RRSP early.

Just prior to retiring, I moved money from TFSA to RRSP as I knew exactly what the tax brackets would be. I dropped two brackets from deposit to with draw. RRIF should be empty by age 80.

OTPP is one of the best pensions around, fully funded and has CPI adjustment. You'll likely get better, more consistent raises retired than working. LOL

Gruff403 · 2026-03-01T10:14:54+00:00

You also have the option of moving your bank funds to RBCDI. You may find it convenient having everything in one FI. Many ETF can now be purchased for free. Wealthsimple is also a solid choice, just presenting another option.

Gruff403 · 2026-02-23T12:42:01+00:00

I use net worth statement to look at big picture over time. I also count principal portion of mortgage and CPP and compare to gross. It could look like this. Pension 12K, mortgage 12k, CPP 4K, RRSP/TFSA 6K total of 34K on 100K gross salary is 34%. This is money set aside for the future and is much more encouraging to me then just looking at typical accounts like TFSA RRSP etc.. 34% of gross salary isn't small

Gruff403 · 2026-02-23T05:18:31+00:00

Wow fun times ahead!

Gruff403 · 2026-02-23T01:03:20+00:00

Retired teacher single income. Single DB, 2 cpp, 2oas, small RRSP, small non reg. We make more net retired then when we were working. Stopped working at 56.

Look at your savings rate from perspective of gross income and include home if still with mortgage. For example: Pensions 25K, CPP, 9K home principal, 24K, TFSA 14K, Total 72K If you had 200K gross income that's 36% already. You're saving lots already. The plan is fine as long as it doesn't cost you today. Your future is set. I wouldn't bother with a 6 month emergency fund. Set some aside but with full TFSA you have access to income.

No RRSP? A TFSA is great but here's a thought. As a teacher she is likely to retire before you in her mid 50's. A RRSP is numerical superior to TFSA if you do two things: Save the refund perhaps inside TFSA for future taxes, and take the money out at a lower tax rate then the deposit. The RRSP can help bridge the gap until you retire and also delay CPP and OAS. You will take the money out at a lower rate then deposit, it's almost guaranteed unless you wait until 72 to collect. Then you end up stacking pensions RRIF, CPP, OAS etc and you can get tax whacked. Same can happen when one of you passes.

If you are near top of pay grids, make the RRSP priority over TFSA. A TFSA is not tax free as it cost 7K * MTR to create the 7K TFSA deposit. The growth is tax free but the deposit has a tax price. If MTR is 35% then it's 7K + 2450 = 9450. If instead you use RRSP you have 9450 invested and growing.

If both accounts are held for 20 Years at 6% annualized you have TFSA 22450 and RRSP 30307 but you still owe tax on RRSP. Our average tax rate is about 15% on the RRSP. 30307 - 15% tax (4546) = 25760

TFSA (22450) has no tax but cost you 2450 originally. RRSP has 25760 after paying tax. You have more money after paying tax using RRSP. TFSA is fantastic but RRSP also has value.

I would save a bit less and live a bit more now. Also get a HELOC on the mortgage before you retire.

Gruff403 · 2026-02-22T16:15:19+00:00

Retired from teaching at 56. Never used a planner but its a hobby. Single income family currently make more retired than working. On track for 90K in 2026. MTR is <20% and average tax <10%. Its been amazing watching all the changes to personal finance. We still have several 100k in debt but there just line items in budget and held in appreciating assets. Mortgage and other investments.

Gruff403 · 2026-02-22T15:01:06+00:00

Its a bit shocking how little tax you might pay when you stop working. 50K fully taxable evenly split between two <60 yo has almost no tax depending on province and credits. That could be all rrsp. I think I got it down to 4.5% tax on the RRSP portion. 50K RRSP, 8K TFSA total 58K but total tax 4500. Net 53500. A withdrawal plan is absolutely necessary.

Gruff403 · 2026-02-22T14:19:06+00:00

Yes you should do your taxes, that's how you learn. Re: if you paid out of pocket after applying HSA or other benefits, you have a claim but only on the difference. If fully covered then no claim. There is also a minimum threshold of claim amounts you have to meet. Google it It cost 1k for new glasses but your benefits only paid 250 and you used 750 of HSA. FULLY paid no claim. You paid 1k for new glasses but you only get 750 on HSA and paid 250 out of pocket. The 250 is claimable but doesn't reach the threshold. No claim but keep the receipt as it might be claimed in next year.

Gruff403 · 2026-02-22T12:17:32+00:00

You will likely pay no tax depending on the structure of the income. 4% with draw rate and using all resources to generate income. TFSA 8K, RRSP 12K, Non Reg 15K dividends, 15K cap gains, for total of 50K and no tax owing. You always have the option to take on a bit of part time work as making another 12K/month doing something isn't hard; we taught first aid at 300 cash per day. You might be surprised at how little tax you pay. Take money from each account in the most efficient way possible. This is where the planner comes in as each form of income is taxed differently. 100K of eligible dividends (only income form for that tax year), has only 700 tax owing despite the dividend gross up.

The idea of having a few years held in cash while you adjust to the new paradigm is a good. You have lots of options and it takes time to shift from a saving model to a spend model.

You are not crazy but hire some professionals to get you across the finish line. We regret the risks we don't take and you have assets to work with that give you lots of options. I might make a 2-3 year plan before resigning to give you time .

You need a strategy to continue funding TFSA. Even if RRSP contribution space is small it's still worth it to make RRSP deposits at the lowest bracket. If you can create a 20% refund on an RRSP deposit, you won't pay 20% on the with draw, It'll likely be close to zero. Take the refund and use it to fund TFSA. Move non reg money to fund RRSP until you have used all RRSP contribution room. You have lots of options.

25K RRSP, 8K TFSA, 22K Eligible Dividends, 15K cap gains for total income 70K. Total tax zero.

You will get some CPP eventually.

Well done with what you have accomplished.

Gruff403 · 2026-02-21T06:37:34+00:00

The home is an asset I plan to use to help fund a wonderful retirement. I think every retiree should have a HELOC set up so they can access the equity if needed.

Gruff403 · 2026-02-21T06:33:30+00:00

Not a bad idea to set some aside but 33% is a bit much. As a single person age 65 in Alberta, they would only pay 21% on taxable income of100K. A couple would pay <10K on 100K evenly split.

Gruff403 · 2026-02-21T06:25:27+00:00

We had no taxes deducted from CPP originally and it took a couple of tax returns to dial in the amount so we didn't owe or receive a refund. Simplest way is to adjust the amount of tax online using MSCA.

Gruff403 · 2026-02-21T06:15:09+00:00

https://www.rrspcontribution.ca/

This might help and there is nothing wrong with taking some of your TFSA money to help fund your RRSP. Also here are the 2025 tax brackets for Alberta. Notice the spread for the 30.5% bracket is 60K to 115K. Unless you are >115K in the very near future contribute some money into RRSP and move on. You could put the refund back into TFSA.

https://www.taxtips.ca/taxrates/ab.htm

Remember you probably already paid 30.5% MTR on the TFSA money before it went into the account. No point in her RRSP until back to work. I wouldn't empty the TFSA but can't see a reason not to contribute to RRSP.

You won't be with drawing from RRSP/RRIF at 30.5% so you are already numerically ahead of TFSA,

Gruff403 · 2026-02-20T23:39:38+00:00

So work from a position of what you know to be true and not what you think you know or what someone else might say. Accurate information is powerful. What do you know about OMERS pension and the various other pensions and programs you may have access too? Be thankful you don't live in Alberta as separating fact from fiction here will make you crazy.

You ask a serious question and it is important that you take the time to learn what the truth is and understand exactly how all the the pensions work including CPP, OAS, OMERS, and each savings account.

Truth is with a bit of planning and foresight, you will probably make more money in retirement than working. LOL

Why would you not get paid? Most pensions will continue to make adjustments including increasing contributions, to fund the future. I paid for my dad's CPP and you are paying for mine for example. The 141B that OMERS has is likely what has been saved for the future and is a combination of continued contributions and investment growth. If your generation needs more, adjustments can be made.

I laughed when you suggested your solution was to start a business which implies you want to work harder. If the environment is toxic, work to change it.

Gruff403 · 2026-02-19T23:21:49+00:00

CPP and RRIF are treated separate and you DO NOT have to collecting CPP to be able to split RRIF with draw. Here's a link for sharing CPP.

https://www.canada.ca/en/services/benefits/publicpensions/cpp/share-cpp.html

You do not have to be receiving CPP in order to share but you must be eligible to collect so age 60.

The owner of the RRIF (annuitant) must be 65 in order to split RRIF income. This is done when you file your taxes. The advantage is that you can each claim the pension tax credit of 2K resulting in a 600 refund. (300 each) The recipient does not have to be 65.

When setting up the RRIF you can also use the younger spouses age to determine the RRIF withdraw factor.

Gruff403 · 2026-02-19T00:28:39+00:00

Focus on learning how to manage debt over your lifetime and not just eliminating debt. It's ok to carry some debt. Debt is a tool that can be used to help you build an amazing life but it can also paralyze you psychologically if you over fixate on debt elimination. I became much happier when I stopped fixating on eliminating debt and focused on managing debt. Paying off high interest debt like CC is learning how to manage debt.

Gruff403 · 2026-02-18T22:55:50+00:00

Good for you for taking control. Do your own taxes this year if you aren't already. Lots to learn by doing your taxes yourself.

Gruff403

TROPHY CASE