Last November, a former Toronto couple began blogging about their real-life retirement in real time. By the time, they began their blog, Astrid and Peter Tobin had already moved from east-end Toronto to Kingsville, a small town on the north shore of Lake Erie, but they documented the path to their decision to escape the city and embrace a small-town Ontario retirement.

We’ve found their story interesting, in that it mirrors much of what we understand and have written here about a rich, rewarding retirement lifestyle.

When the Tobins started thinking about retirement, they took a hard look at their finances and realized that in order to remain in the home and neighbourhood they’d lived in for 12 years, they’d need to both get rid of their car and fully pay down their mortgage. Neither was an option. The alternative was to move out of Toronto, which was just too expensive a place in which to retire.

Starting to seriously think about retirement had been sparked by visiting retired friends in Bracebridge, Ontario and seeing the retirement lifestyle they were enjoying in a smaller Ontario community. So moving from the city already had attractions.

On top of that, they’d always seen their Toronto neighbourhood as having a small-town atmosphere, with shops and the Beach within strolling distance. They set out to find the same feeling in a smaller community.

Their priorities included affordable housing, a community on the water with a public beach nearby; proximity to a golf course; an active arts community; and walking distance to town. Hmmm, starting to sound familiar? You might as well describe Meaford Haven.

The Tobins’ search took them north to Muskoka, further north and east to the Ottawa area, and then along Lake Huron and over to Georgian Bay. They found Collingwood a great place, but not suited to retirees on their budget. (We wish we might have met them on their travels, and shown what Meaford Haven has to offer in a short while.) And in the end, they chose Kingsville, for all of the above reasons.

In their most recent post, they reveal how much they’re saving by living a small-town Ontario retirement lifestyle. Owning a more affordable house, along with other reduced costs, has freed up an additional $350 a month.

We’ll keep following the Tobins, and hope to hear more about their real-life retirement in small-town Ontario.

A recent article in the Globe and Mail by Robert McLister reports that almost 25 percent of baby boomers aren’t really that concerned about paying off their mortgage by the time they retire. The article says that, currently, about a quarter of Canadian homeowners continue to carry a mortgage into retirement – and that more than half expect that to be the case.

Mr. McLister points out the risks this attitude carries – including the chance that rising interest rates down the road may turn a manageable monthly expense into something that will quickly cut into the fixed, more modest income you’ll have in your retirement years.

While he suggests that for many, carrying a mortgage into retirement may not be that big a deal – if you are worried about being caught unprepared, you can take certain steps to avoid the risks.

These include working longer; getting a fixed rate mortgage with at least a five-year term; extending your amortization to 30 years; or starting to pay down your mortgage while you’re young. (Unfortunately, baby boomers who haven’t already taken the last bit of advice can’t really take it now.)

While this is all sound advice, Mr. McLister fails to point out another solution. By downsizing (or right sizing) or moving to a less expensive real estate market (or doing both), you can eliminate your mortgage and discover a more enjoyable lifestyle in which to enjoy your financially liberated retirement years.

We just thought we’d point that one out.

Forty-seven percent of Ontarians expect to still be paying for a mortgage into their retirement years, according to a study released by BMO Financial Group last week. This despite the fact that retiring mortgage free not only makes for a more enjoyable lifestyle – it’s a smart financial move.

“If your retirement is only a few years away, it’s wise to try and pay off your mortgage before you enter retirement,” says Laura Parsons, Mortgage Expert, BMO Bank of Montreal. This is due to the simple fact that less employment income means less money to manage your debt load, says Tina Di Vito, Head, BMO Retirement Institute.

Strategies include choosing a shorter amortization or switching to bi-weekly payments – both of which mean paying a little more down and decreasing the ensuing debt years down the road. But in the years immediately before retirement these options may not be the most effective choices; there simply isn’t enough time to make a significant dent. Fortunately, there is another way to retire mortgage free.

If you’re living in one of Ontario’s real estate hotspots, you likely have substantial equity in your home, even if you are still carrying a mortgage. That equity will go a long way in many Ontario small towns, including some of the most beautiful in the province. This might mean downsizing a little – but maybe not as much as you think. Moving from a four-bedroom home in the GTA to a condo in the same community to save money will mean settling for a much smaller place, as real estate values will be comparable. But you’ll find a small-town Ontario retirement community can mean less downsizing for the same value – and can offer a more enjoyable retirement lifestyle to boot.

Move an hour or two out of the more expensive regions, and you’ll be able to retire from that mortgage along with your job.

Here’s a great article from MoneySense Magazine on the benefits of downsizing, with some ideas to help you determine if retiring mortgage free to small town Ontario is right for you.

Phased retirement or partial retirement has a lot of things going for it: staying active and stimulated during retirement; having a little more money to enjoy some of those retirement perks you’ve been putting off; and enjoying a retirement lifestyle before you might have otherwise been able to.

If you’re looking to ease into retirement and begin enjoying the lifestyle a little sooner, cutting costs can help you do it. Here are some tips to get you enjoying your Meaford Haven retirement sooner.

Live where it’s cheaper
Just moving to a retirement community in a small town like Meaford, Ontario will immediately cut your expenses. That large city or suburban home carries a lot of regular, ongoing costs in maintenance, taxes and insurance.

If you still have a mortgage, selling your home and finding an Ontario retirement community in a small town can see you mortgage free, which frees up a lot of monthly cash flow right away.

And you’ll be surprised at how many things are a lot less expensive in small-town Ontario.

Reduce your belongings
Moving to a smaller place – or right-sizing, as we like to think of it – means you need less stuff. Selling off some of your belongings can provide a tidy sum for additional investment or other use. And donating items, as long as you get a tax receipt, can help you to a tax break.

If you’re retired, or working in the “nobody-knows-you’re-retired” guise, you don’t need the same clothing budget you had when you were heading to the office, the plant, or the store every day.

And a second car isn’t nearly as necessary once you’re in retirement or semi-retirement. Selling the second car can immediately net you thousands, and the additional savings on insurance and maintenance will continue to add to your bottom line.

Do you need a land line? In this age of mobile communications, you might want to take a tip from those 20-somethings who rely on cell phones alone. A good family plan can have you both in touch at all times for not much more than you’d pay for a land line alone.

Re-evaluate your insurance needs
Your home insurance will likely drop when you move to a retirement community. If you’ve shed that second car, you’ve slashed that insurance burden. And as you ease into retirement, you should consider your life insurance policies. At this point, changing at least part of a large whole life policy into term insurance provides protection while cutting costs.

Ontario retirement communities bring together a real mix of people and lifestyles. Some are intent on devoting their retirement to recreation and leisure. Others want to volunteer and do good works. A group want (or need) to continue to work during retirement – to varying degrees. And some find the perfect retirement mix of all of the above.

If you’re one of the ones considering phased retirement, here are some things you should consider.

“If you do work in retirement you will need to assess when and how much you should take out or convert into a Registered Retirement Income Fund (RRIF),” Dave Ablett, Director of Tax and Retirement Planning with Investors Group, told the Globe and Mail.

If you’re making good money – good enough to pay the bills and let you enjoy the retirement lifestyle you want – you have until 71 before you must convert your RRSP into a RRIF, so you might want to hold off as long as you can. You can even continue to contribute to your RRSP and may be able to contribute to a spousal RRSP.

Raise a toast to your Georgian Bay retirement

If your income doesn’t quite cut it, you can began to convert your RRSP into a RRIF, but pay attention to the tax bracket you end up in, and consider the potential to split your income by allocating a portion of the income to your spouse.

If you have a pension plan (other than CPP), new rules make it easier to collect part of your pension while working. And starting this year, if you’re 60 or older, you may apply to receive your CPP retirement benefit without having to stop working or earning less than the max CPP benefit for at least two months in a row – as you used to. And if you are working, you’re now able to continue to contribute to CPP to increase your benefits. In fact, you’ll be required to up till 65, and after that, you can continue on a voluntary basis.

Talk to your financial planner to plan a sound phased retirement strategy, and get set to enjoy your Georgian Bay retirement lifestyle.