Should You Take The Commuted Value of Your Pension?
Maybe you've quit, maybe you've been laid off, or maybe you've decided at 55 years old it's time to say goodbye to the office and start training for the NHL. However you've got there, you've reached an area of time where you need to determine whether or not it's best to take the commuted value of your pension. Kent breaks down the things you need to know and consider to make a very important choice. We get into some numbers and then discuss some other considerations.
For a more in-depth view of this important time for your life and career, contact us at info@k4financial.ca
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Пікірлер: 9
Another great video .. the case is similar to what I dealt with back in 1997 (I was 37 at the time). For me , at the time , I was too busy living life to figure out what was the best option. The company I worked for was a major Life Insurance company. I left my money in the pension and all these years later I am happy that I did. When I hit 65 in a couple of years I will be getting a nice monthly pension. Could I have invested the money and did better for myself , perhaps... who knows .. but now I am looking forward to that extra cash every month to augment my retirement savings.
Once the numbers are in, will be reaching out to discuss the best options for us re: commuted versus pension. Looking forward to meeting with our favourite CFP for his valued feedback 🙂
Great video!
Many years ago I moved the funds into a LIRA and am not sure that that was the best decision. I didn't have the benefit of having a financial planner calculate this out for me. It's done now so I don't dwell on it.
Hi Kent Your material is great You explain concepts to make it easy for clients to understand Thank you That said- as an advisor I would never recommend commuting only because it fleeces my pocket I am 100% always going to show all options and will only recommended what makes the most financial sense to that individual We aren’t all in it for just ourselves I have a fiduciary responsibility to my clients and take pride in upholding this responsibility 😊
Great explanation and I agree that an average person keeping the pension plan is the better choice.
My defined benefit pension plan has given me choice of moving to TFSA or RRSP; or have them move to 'inactive' account since I have not been contributing to the pension plan since my stroke in 2019 I think I will move to RRSP; and begin drawing it down after turning 65 I am currently getting private insurer benefit payment each month (which ends when I turn 65) and CPP Disability each month. I have Revenue Canada disabled designation at the moment so practically no income tax for me eh
Here is my question My current pension over 19 yrs I have contributed 70k plus and the company doubles that. I am 45 now and have been let go from the company what should I do? I will have to wait 2 yrs inorder to withdraw the money to a lira
@K4Financial
8 ай бұрын
No, it sounds like a defined contribution plan. In that case, you’ll just transfer it to a Lira. If I’m wrong and you have a defined benefit plan, you’ll have a choice and you’ll want to run the math and the pros and cons of each option. You can email us if you have more specific questions. Info@k4financial.ca