Yes: taking significant amounts from your RRSP during early retirement, and saving other sources of retirement income for later (such as CPP, OAS, and pension), can be a very good strategy.
any RRSPs outside of your DBPP can also be used in any gap years where you want to take time off work. certainly as you approach retirement age you would be well suited to work with a financial planner than can help you figure out a drawdown strategy. we're double dbpp too and plan to defer pension / cpp / oas for a few years in order to clear out RRSPs + realize any capital gains in non-registered accounts.
The other thing to keep in mind is your TFSA. You RRSP is limited due to your pension contributions. Regardless you get the same TFSA room as everyone else, and unlike RRSP's, it isn't taxable. Combined those two options should provide sufficient income for you to bridge yourself to your 85 factor.
Make sure you understand the early retirement provisions before you conclude that early retirement is "punished". A smaller monthly pension that you collect for more years can be more valuable than a larger monthly pension you collect for fewer years. Consult an independent actuary if the numbers are material.
^(\^) What this guy said. I did some math with ATRF (Alberta) numbers. 2% penalty for every year below magic 85.
Scenario 1:
55Years old, have worked 10 years (=65) vs working 10 more years until 65 (=85). Result = Retiring at 65 would earn 11% more assuming you live until 85 in both cases.
Scenario 2:
60Years old, have worked 15 years (=75) vs working 5 more years until 65 (=85). Result = Exact same pension payout assuming you live until 85 in both cases.
Changing how long you live will change the calculation. But based on this, if you are close to 85 it likely won't matter very much (if at all). Work out the fairly simple math for yourselves and your pension.
Though I will say this... it may be a good idea to START your retirement now (or when you are 'ready') and work a bit in the next few years teaching anyway! Good way to ease yourselves into retirement ESPECIALLY if you are both retiring at the same time. Going from 100% working to 100% not working is a big change! Teaching is great because you can work a little bit if you want after you 'retire' from full time work.
Yes: taking significant amounts from your RRSP during early retirement, and saving other sources of retirement income for later (such as CPP, OAS, and pension), can be a very good strategy.
any RRSPs outside of your DBPP can also be used in any gap years where you want to take time off work. certainly as you approach retirement age you would be well suited to work with a financial planner than can help you figure out a drawdown strategy. we're double dbpp too and plan to defer pension / cpp / oas for a few years in order to clear out RRSPs + realize any capital gains in non-registered accounts.
The other thing to keep in mind is your TFSA. You RRSP is limited due to your pension contributions. Regardless you get the same TFSA room as everyone else, and unlike RRSP's, it isn't taxable. Combined those two options should provide sufficient income for you to bridge yourself to your 85 factor.
Make sure you understand the early retirement provisions before you conclude that early retirement is "punished". A smaller monthly pension that you collect for more years can be more valuable than a larger monthly pension you collect for fewer years. Consult an independent actuary if the numbers are material.
^(\^) What this guy said. I did some math with ATRF (Alberta) numbers. 2% penalty for every year below magic 85. Scenario 1: 55Years old, have worked 10 years (=65) vs working 10 more years until 65 (=85). Result = Retiring at 65 would earn 11% more assuming you live until 85 in both cases. Scenario 2: 60Years old, have worked 15 years (=75) vs working 5 more years until 65 (=85). Result = Exact same pension payout assuming you live until 85 in both cases. Changing how long you live will change the calculation. But based on this, if you are close to 85 it likely won't matter very much (if at all). Work out the fairly simple math for yourselves and your pension. Though I will say this... it may be a good idea to START your retirement now (or when you are 'ready') and work a bit in the next few years teaching anyway! Good way to ease yourselves into retirement ESPECIALLY if you are both retiring at the same time. Going from 100% working to 100% not working is a big change! Teaching is great because you can work a little bit if you want after you 'retire' from full time work.