Have lots of RRSP room if your employer regularly offers a lump sum early retirement incentive package, some employers offers 12 to 18 months. Don't forget you need to pay your own Extended Health or Dental, some pension plans offer the plans.
Yes, RRSPs present a dilemma. If you contribute every year, then you save taxes every year at let's say 25% tax rate. Or, you contribute zero each year, thereby running your available contribution room up. That means that you may have lots of contribution room, maybe $150k. Then you retire, you can stuff $150k into your RRSP. You may save tax at a marginal rate of 50%
Hi Vijay. That's a tax question. Generally, you want to avoid extra income from a pension or severance settlement in a year when you worked full time: short answer: January/ February better. Cheers
My understanding is that If a person elects to take a defined benefit pension plan and pass away, their partner will continue to receive XX% until their death. Should they both pass say in a accident, or die within a few weeks/months of each other, what typically happens to the balance of funds? Doe it automatically go to the estate or get absorbed back into the plan? I'm told in this instance CPP just gets absorbed back and does not go to the estate; but I could be wrong.
@@pensionsolutionscanada Thanks for the fast response. Then if a person had multiple pensions, it might be a good idea to keep one defined benefit (assuming there are some dental/medical benefits attached) and the commuted value for the rest? This would beneficiaries you want instead of back into the company/union pension plan?
Have lots of RRSP room if your employer regularly offers a lump sum early retirement incentive package, some employers offers 12 to 18 months.
Don't forget you need to pay your own Extended Health or Dental, some pension plans offer the plans.
Yes, RRSPs present a dilemma. If you contribute every year, then you save taxes every year at let's say 25% tax rate. Or, you contribute zero each year, thereby running your available contribution room up. That means that you may have lots of contribution room, maybe $150k. Then you retire, you can stuff $150k into your RRSP. You may save tax at a marginal rate of 50%
what's commuted value?
The commuted value of your defined benefits pension is the cash value. This might be an option when you retire.
What is more beneficial to retire in November or February in following year .
Hi Vijay.
That's a tax question. Generally, you want to avoid extra income from a pension or severance settlement in a year when you worked full time: short answer: January/ February better. Cheers
@@pensionsolutionscanada Thank You .
Good thing I like peanut butter lol
Sardines are full of protein, no pollution & cheap. 😎
@@pensionsolutionscanada Ha ....I luv those as well...its great to be cheap!
My understanding is that If a person elects to take a defined benefit pension plan and pass away, their partner will continue to receive XX% until their death. Should they both pass say in a accident, or die within a few weeks/months of each other, what typically happens to the balance of funds? Doe it automatically go to the estate or get absorbed back into the plan? I'm told in this instance CPP just gets absorbed back and does not go to the estate; but I could be wrong.
Hi Paul. Short answer: pension dies with 2nd death, CPP has survivor benefit to spouse only.
@@pensionsolutionscanada Thanks for the fast response. Then if a person had multiple pensions, it might be a good idea to keep one defined benefit (assuming there are some dental/medical benefits attached) and the commuted value for the rest? This would beneficiaries you want instead of back into the company/union pension plan?
Definitely keep benefits. At age 80 you want to have automatic travel coverage.