Leaving your place of work

June 2019 – Leaving your place of work can be stressful, regardless of whether it is by your choice or not. Knowing what to do with your Employer’s Pension or Group RSP likely adds to the stress. You want to be sure to make the best decision based on your personal circumstances. Some options are more attractive if you’re retiring, versus others may be better choices if you’re younger and will be continuing to work. Depending on the type of plan you have, the usual three options include 1. Keeping the pension plan with your employer to have lifetime income, with no market risk, and perhaps inflation protection. 2. Transferring the pension to a Locked In Retirement Savings Plan (LIRA) so you can manage your own investments, then choose the type and timing of your retirement income at a later date. 3. Transfer the RSP/pension to a single (or joint) life annuity to ensure guaranteed lifetime income without the worry of outliving your money. Getting good advice from a professional is critical so you can be sure you understand all the variations and potential consequences of each option and choose what’s right for you and your family.