r/CanadianRetirement

63, eligible for 50% OAS + 50% CPP - $1.7MM CAD in RRSP's and TFSA - no company pension. Just got made redundant.

How worried do I need to be about retirement?

I figure 1.7MM @ 3% draw means it won't run out if put 80/20 into equities / bonds.

Should give me all in ~$60K per year to live on which will inflation correct automatically over the next 25 years.

Seems light - also seems precarious. A decent ('87 or '07) style crash would leave me eating dog food.

Thoughts? How worried do i need to be?

On Oct 2 I asked them to withdraw 3500 and withhold 3450 for taxes to avoid installments next year. They only withheld 10% or 350. Can they correct this? If not can I send the extra 3100 to CRA now. What name do I use on the bill payment? The choices are: CRA - tax return or tax amount owing or tax installment (I am not on installments)

Edit: I am retired

With so many planners promoting aggressive RRIF meltdowns to avoid that tax bomb at death I ran some scenarios with 1M RRIF 200k TFSA for a couple age 70, 4% returns, 2% CPI, 70% survivor spend rate, avg CPP/OAS of 38k, 60k spend rate

For each age range xx/yy where xx/yy=lifespan of each spouse, I filled the lowest (BC) 19.6% tax bracket for each spouse (conservative and the 31% bracket (115k) aggressive

Age 85/85 Estate was about the same within 5% after taxes ~1.3M

Age 75/85 Again estate within 5% after taxes ~1.3M

Age 95/95 Estate higher by ~10% with the conservative meltdown and lower with aggressive ~1.7M/1.5M

Conclusion: Unless you both die early it doesn't make much difference if you choose aggressive or conservative. If either expects a long life then go conservative because paying less front end taxes provides a larger RRIF for more growth