Retirement planning getting you down? There are always smart ways to plan the financial aspects of your retirement.
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Morneau Shepell defends its dealings with Ottawa amid minister’s controversy + MORE Oct 28th
The human resources and pension management firm at the centre of the conflict-of-interest controversy raging around Finance Minister Bill Morneau has itself joined the debate.
In a statement today, Morneau Shepell is refuting opposition claims that it has benefited from having its former executive c.... More »
How much has the pandemic hurt your retirement plans? We delve into the retirement portfolios of two couples hit hard by COVID-19 to see what damage was done + MORE Feb 16th
We start with Deborah and Daryl Burton, a Toronto twosome in their early 70s who both contracted COVID-19 early in the pandemic..... More »
How to retire at 55 with $586,000 + MORE Jan 27th
Nathalie Ouelett, 54, works in the audit department of the Quebec government in Quebec City. She loves her job but says she has so much that she still wants to do in life that she’s going to hang up her hat from full-time work this July. “I have 177 sleeps to go,” says Nathalie, who laughs an.... More »
Sears Canada seeks approval to suspend benefits for retirees + MORE Jul 8th
TORONTO — Sears Canada says it will go to court next week to seek approval to suspend benefits for its retired employees as well as special payments to its defined benefit pension plan.
The ailing retailer says it will also ask the Ontario Superior Court on July 13 to extend court protection from .... More »
Where should working retirees put extra income: A TFSA or an RRSP? Jan 11th
Ask MoneySense
I will be receiving CPP and OAS as of June 2024. I intend on working one more year until I reach 66. My question is: Should I put all my CPP money into an RRSP to shelter it from tax? Or should I pay the tax on it and invest in a tax-free savings account?
–Gary
Where to put r.... More »
Pension withdrawals: Lump-sum vs. deferred payment
– moneysense.ca
(iStock)Q: I am about to make a decision on whether to take a lump-sum on my pension or a monthly amount. I have some other investments, but my thought was I did not want everything tied up in the markets in case markets took a dip. I thought a monthly amount might be best for my situation, but I may be wrong.—Bill
A: The biggest retirement decision that an employee can make is when to retire. The second biggest is what to do with their defined-benefit pension, if they have one.
Sometimes, the pension decision comes about because of retirement. In other cases, it’s due to a termination of employment or a company making a change to their pension plan for employees. Regardless, it’s not uncommon to be given a choice between taking a lump-sum payment in lieu of your future monthly pension (known as a commuted value) or otherwise taking your calculated monthly pension payment in retirement.
If you take a lump-sum, Bill, it can typically be transferred to a locked-in retirement account (LIRA), which is just like a regular RRSP with a few restrictions…
