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This is so exciting! I feel a genuine sense of excitement for you despite not knowing you personally. I look forward to your continued updates and hearing how your resignation notice goes over with your company!
 

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  • Work: I had most of December off and didn’t miss work at all. So, pretty sure I’m not going to miss it when I retire. I still have another week off and am planning to hand in my resignation letter the week I’m back in the office. It’s 15 weeks to go until retirement and I have about 5 weeks of vacation so I’m going need to discuss with my manager how I deploy my vacation time the rest of the way.
As per others, a good story. To the point at hand, consider tacking most/all of it on at the end, e.g. leave 5 weeks earlier than last day of work is one example. The manager may prefer this anyway.
 

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Work: I had most of December off and didn’t miss work at all. So, pretty sure I’m not going to miss it when I retire. I still have another week off and am planning to hand in my resignation letter the week
Wow this really is exciting. I'm very happy for you!

As someone who went on "sabbatical" for a bit, but then resumed working... I can say that the months where I was completely work-free were VERY pleasant. And recently, I took the second half of December off, and had an incredible time just enjoying the time and freedom. Now that I'm back to work in January, it's a bit soul-crushing.

And I knew that inbox full of work emails and never-ending tasks was just sitting there, waiting for me to come back to the [home] office.
 

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Discussion Starter · #224 ·
Thanks for the supportive comments.
Wanted to hold off on replies until the end of the week to report on how handing in my letter of resignation went and give myself a chance to digest it.

hearing how your resignation notice goes over with your company!
It went as well as I could have hoped for so far. After updating me what went on with the team during my time off and how things were shaping up for work in the new year, I had a chance to share my thoughts on the upcoming year. So I just blurted out that I'm going to be resigning. That kind of caught of caught my boss off guard of course. I think he was a bit concerned because I didn't say intially say why. After I explained it was because I was retiring, he seemed happy for me. We also kind of chatted generically about the financial aspect as he's also interested in retiring early.

Personally, I've encountered a range of feelings over the week: Relief that I announced it to my boss and can more openly start putting some wheels in motion. Excited because this was a key milestone. Sad because a significant chapter of my life is closing. Scared because I've committed to leaving my safety net of a job/employment income.

Consider tacking most/all of it on at the end, e.g. leave 5 weeks earlier than last day of work is one example. The manager may prefer this anyway.
We did discuss at a very high level some of the details for my remaining 3 months. My boss didn't care how I'm planning to use my remaining vacation time. I told him I'll just fit it in here and there which he was fine with. I'm currently not planning to backload it because I'm trying to finish up a couple of in-flight projects which have timing that kind of aligns with my retirement date. My boss seems to be ok with me just focusing on what's currently on my plate and not assigning me any new projects/work assignments because it doesn't make sense for me to start on something new for a month and then having to spend a few weeks knowledge transferring. He also agreed to keep my retirement in confidence, other than to my VP who needs to sign off on initiating the process to find a replacement. We'll see how keeping my retirement a secret goes. :D

As someone who went on "sabbatical" for a bit, but then resumed working... I can say that the months where I was completely work-free were VERY pleasant. And recently, I took the second half of December off, and had an incredible time just enjoying the time and freedom. Now that I'm back to work in January, it's a bit soul-crushing.

And I knew that inbox full of work emails and never-ending tasks was just sitting there, waiting for me to come back to the [home] office.
Normally, I'd be checking email pretty frequently during vacation but I started to let it slip during the latter half of my time off over xmas. And I agree, it was VERY pleasant to de-stress from the responsibility! And similarly, it was soul-crushing my first day back when I hadn't even had a chance to get settled and reorientated before I had to jump on a zoom call to get drilled for various status updates.:D
 

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Discussion Starter · #226 ·
I have a private sector defined contribution pension while the missus has the quasi-public sector defined benefits pension so I'm assuming you are referring to her pension since I'm just planning to roll my DC pension into a locked in retirement account and managing it like a self directed RRIF..

Her pension website does have a simulator tool which I've ran a few calculations on. If she works to and retires at age 62ish, she can immediately draw an unreduced pension of about $62k/yr. If she retires at age 50 or 55 but doesn't draw on her pension until around age 60ish, she will instead draw around $35k/yr or $45k/yr respectively which is a huge difference. Her pension administrators introduced significant early retirement penalties a couple of years ago to ensure the viability of her pension plan because too many people were retiring early. Her employment also provides fantastic health benefits. So she feels a bit handcuffed and doesn't want to retire so early and leave so much money on the table. She similarly says "It's going to be $x less per year for the rest of my life!"
Conversely, I'm a few years older than her so I'm not wanting her to work too much longer so that we can start on our goal to travel way more, though the pandemic has also thrown a bunch of uncertainty into those lofty plans.
 

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Not quite, I am referring to the Canada Pension Plan (CPP) that every Canadian at salary is subject to get, as early from 60 (probably included in her retirement package but also for you). Here it is topped with a Quebec Pension Plan and the combined maximum is 20K/yr I believe (at 65). If I stop contributing at 55 and get it at 65, it would be 12K/yr I believe. If stopped at 60, it would be 16K/yr. I don't know that works in BC.
 

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Discussion Starter · #228 ·
Ahhh, sorry.
Yes, I've previously done some calculations around the impact of retiring early on my CPP benefit, with @Dogger1953, our resident CMF CPP expert somewhat giving his blessing to the rough formula I'm using. :D

(My max contribution years)/(Number of years used for max monthly benefit) x (Max Benefit) x (Earlier Reduction Penalty/late multiplier) = Rough Monthly Benefit

Retiring early, will effectively reduce my maximum contribuition years and prevent me from obtaining maximum CPP benefits which seems somewhat similiar to what you describe for QPP.
I quickly ran the numbers for my CPP again. Based on the above formula, if I start CPP at 65, I'm losing out on about $5k/yr for life by retiring early and not hitting my required max contribution years. However, I'm planning to take CPP at age 70 to take advantage of the multiplier for starting it later. This scenario has me lose out on about $8k/yr for life compared to if I met my max contribution years (roughly $12k/yr vs $20k/yr in today's dollars) but still increase my payout compared to age 65.

I have not factored in what type of impact my early retirement will have on the new Enhanced CPP benefits. However, since the additional contributions to this program started so late in my working life, I'm assuming it would not have significantly added to my CPP benefits anyways.

From an overall retirement income strategy perspective, I'm planning to use my dividend income as my base and then supplement it with RRSP and DC pension withdrawals. I'm not relying on CPP (and OAS) in my my core retirement income expectations but include it in my overall view.
The investments I'm using to generate the dividend income are dividend growth stocks so I'm hoping the dividends will at minimum keep up but preferably grow faster than inflation over the long run. Conversely, I'm planning to apply VPW to my RRSP withdrawals but tweaking it to be a bit more agressive in terms of stabilizing the nominal withdrawals even if the percentage for the year doesn't warrant it.
CPP (and maybe OAS) will serve primarily as a buffer if I burn through my RRSP too fast and secondarily if I run into issues with my dividend income (like dividend cuts, etc).
I accept the fact that this is not the most efficient strategy both from a maximizing income thoughout my retirement perspective and taxation perspective but I'm not going to sweat it.
 

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When I decided to retire, my notice consisted of an email to my boss with 2-3 sentences (give or take). It was simply to the point for formality only. Anything else can be said verbally at one's retirement luncheon ...
My company has gone electronic so a recent retiree said that the congratulations email from his boss included the steps to signin to the application to electronically submit the resignation, including the date.


... I still recommend NOT providing more than 3 months notice, and preferably less. Being sidelined and no longer taken seriously after notice can be a slow ticking clock. 90 days can feel like 180 days.
Talking to recent retirees and/or the pension/benefits person can avoid costly mistakes.
Less than three months notice at my company results in a period of no pension payment and losing one's retirement medical benefits for both white and blue collar workers.

Cheers
 
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