Kevin's recent loss has led him to reevaluate his life choices and retirement plans. With his wife's passing, he now aims to retire at 54, prioritizing time with his children in university. His annual income is $135,000 before tax, with expenses ranging from $40,000 to $45,000. His retirement goal is an annual income of $80,000 before tax, supplemented by a part-time job earning $20,000 annually. Kevin's financial situation includes a hybrid pension plan, a Canada Pension Plan (CPP) survivor benefit, and an Old Age Security (OAS) benefit. He also owns a debt-free home in British Columbia, valued at $1.5 million, and has an investment portfolio worth $900,000. However, achieving his retirement income goal of $80,000 annually would require approximately $1.4 million in investments, which he currently lacks by about $440,000. Kevin's investments are primarily in equities and fixed income, with an expected annual return of 6.76%. A financial planner suggests that Kevin could work part-time until age 65 to bridge the gap, leaving the workforce completely next year. Additionally, Kevin should consider downsizing his home or reducing his retirement income target to $64,000 annually. The planner also advises starting his pension at retirement age, deferring CPP until 65, and optimizing tax strategies by withdrawing less from RRSPs and more from non-registered investments. Kevin's financial plan should also address the possibility of leaving his home to his children and the implications of delaying property tax payments.
