Will and Liza Darcy Will and Liza are both 58 and want to retire from their well-paying jobs. Liza works in education and Will at a government agency. Liza would like to retire at 60 and Will hopes to quit his job in 2028 when he turns 63. They are both open to working part-time until they begin collecting their government benefits at age 65, although they would prefer not to. They would like to travel to Europe in the fall and to a hot climate in the winter. They want to stay in their Saskatchewan home as long as they can then leave it to their two children, now in their late 20s. Question: Can they retire early and spend $80,000 a year after tax? Goals: Will wants to retire in 5 years when he turns 63. Liza wants to retire in 2 years when she turns 60. Current Income: John $106,000 Gross 74,200 Net Liza $98,000 Gross 68,600 Net Current investment portfolio: 90% stocks and 10% cash and bonds Pension Plans: John: Defined contribution plan worth $680,000 (6% contribution matched by employer) Liza: Defined benefit plan will pay $35,000/year once she turns 60. Her pension plan is indexed to inflation. Her pension adjustment is $6000 for the current tax year. Their Canada Pension Plans will be about 75% of the maximum and they are thinking about taking them at 65. They would also like to take their OAS when they turn 65. (NOTE: Maximum CPP for an individual in 5 years taking their CPP will be approximately $19,500 and OAS payments will be about 11,600 annually each) Part-Time Work: Once they retire, they both plan to work part-time until they reach 65 earning about $12,000 each. Financial Information: Current Monthly net income: $11,900 Assets: Cash $6,900 TFSA (Liz) $28,700; TFSA (Will) $2,105 RRSP (Liz) $45,085; RRSP(Will) $175,770 House $775,000; Liabilities: $87,420 mortgage at 1.99 per cent due 2026 $64,140 mortgage at 1.92 per cent due 2027 Monthly expenses: Mortgages $2,095; property tax $455; water, sewer, garage $65; home insurance $75; electricity $110; heating $250; maintenance, garden $110; transportation $436; groceries $800; entertainment (including travel and club membership) $1000 personal care and clothing $300; life insurance $380; Cellphones/TV/Internet $460; Miscellaneous $300 RRSPs $800; TFSAs 600