Should you buy back pension service from your employer? Jun 22nd

Retirement planning getting you down? There are always smart ways to plan the financial aspects of your retirement.
Latest News

Maximizing spousal RRSP contributions in your 70s + MORE Mar 23rd

Q. My wife will turn 71 in 2022. She has three spousal RRSPs that we will arrange to mature on the same day: Feb. 8, 2022. On that day, we will convert all the RRSPs into a RRIF. Between now and then, I wish to take full advantage of my ability to continue making contributions to spousal RRSPs. I am.... More »

Women, here’s how to save more for retirement — or you’ll live to regret it + MORE Mar 2nd

The right adviser and the right habits can impose discipline, writes Lesley-Anne Scorgie..... More »

Best high-interest savings accounts in Canada 2021 + MORE Jan 5th

Regular savings accounts offer very low interest rates, so if you want to earn on your deposits (rather than simply use your account as a temporary “holding tank” for funds you’ll soon be using for purchases, or directing to longer-term saving and investing vehicles), a high-interest savings a.... More »
 retirement planning

The scoop: What Canadian investors need to know now + MORE Sep 21st

For those who like surprises, the stock markets have not disappointed in 2020. The S&P 500 surged to new heights despite the economy-clenching COVID-19 pandemic powering around the globe, and individual investors’ participation in trading reached a 10-year high during the first half of this ye.... More »

Divorce over 50: managing your finances if you find yourself single in the run-up to retirement Aug 3rd

Divorce is certainly not new—but what’s emerging as a trend is the choice to split later in life. Dubbed grey divorce, these marital splits, happening close to or in retirement, are reportedly on the rise, and they can have a significant financial impact.  Married couples are generally subject .... More »
While defined benefit (DB) pensions are the Cadillac of retirement plans, they also entail a unique set of decisions. Buybacks are one of them.
There are a few ways to build up the value of your DB pension: by working to accumulate years of “pensionable service,” of course; by transferring service you earned from a previous job to your current plan upon retirement; and through buybacks, which are basically what they sound like—you purchase periods of service to add to the total years used to calculate the value of your DB pension.
DB pensions provide a fixed future income base based on a formula for final/highest average earnings and an interest rate for accumulated years of service. According to Matthew Ardrey, vice-president of Toronto-based TriDelta Financial, a pension buyback affects the years of service part of that formula. Each year you earn, or buy back, has a multiplier effect on the overall pension. “[It’s] evident why someone may want to do the buyback,” says Ardrey, “as pension plans reward employees with longer service…

Continue Reading On »


Compare insurance quotes through - save time and money!