Leaving an employer can often be an emotional time. Whether you are leaving your employment voluntarily or involuntarily, there are generally three main financial issues that need to be considered:
1) retiring allowance planning
2) pension plan options
3) salary continuance and company benefits.
It is important to carefully evaluate the options presented to you as the decision is often irreversible. When analyzing which pension option is best for you, the goal is to find the option that will provide you with the best cash flow throughout your retirement at a risk level that is acceptable to you.
Option 1: Keep Your Pension with Your Former Employer:
Option 2: Purchase an Annuity:
Option 3: Transfer to a LIRA/Locked-in RRSP:
While it may seem difficult to know which option is best for you and your family, working with your VFS advisor, qualified tax advisor and pension and benefits representative or human resources specialist, may help you select the option that is best for you and your family. These advisors have access to a wide range of information and calculators that can help you analyze your options. They can prepare a customized analysis of your situation and make a recommendation based on all of the important considerations that are unique to your specific personal goals and circumstances.
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