FIN 3521 Retirement Planning Assignment Sally is 59 years old, and after 35 years of working for the same company, has decided to take
the offered severance package of $80,000 at the end of the year.
Adam is a 61 year old business manager (earning $90,000 annually) who has been with his
current employer for eight years. There is no pension plans at all with this employer, but he
enjoy the work environment. Besides, with grown up children and being mortgage free, he feels
staying in a good working environment beats jumping around jobs at his age.
He wasn’t planning on retiring until 65, but would now like to retire to be with Sally.
What they need to know is: FIN 3521 Retirement Planning Assignment
1. If it’s financially possible for both of them to retire at this point in their lives. Or
2. Should they wait until Adam’s normal retirement age being 65?
3. They have heard a lot about deferring collecting CPP and OAS until age 70. If they did
this, would it hurt them financially? Is it necessary for Sally to wait until her 70th birthday
or could she apply when Adam does?
They would like to explore all three options in order to make an informed decision.
Other details:
If they retire at age 60 – both of them would cease working completely.
If they waited until age 65, Adam would still be working at his current job until age 65, but not
Sally. She would retire regardless, but work part‐time at the local supermarket receiving $
20,500 annually net of all deductions to supplement her CPP income until Adam’s 65th birthday.
At this point they will start their CPP and OAS. FIN 3521 Retirement Planning Assignment
If they both waited until age 70, they hope that neither of them would be working after 65, so
they will completely be depending on their savings, investments and retirement funds. They
will both defer collecting CPP and OAS until age 70.
So they’ve set up a meeting with you and your retirement planning team to help them with the
answers. They hope to live past age 90, but just to play it safe, they would like to plan until age
95 as they are in fairly good health.

FIN 3521 Retirement Planning Assignment

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