Option 4 - Combination Option

This option is a combination of Monthly Pension and Commuted Value and is available in several pension plans.

Features:

This will provide a guaranteed income as well as a portion that will be transferred to a locked in account and the balance payable subject to income tax.

Benefits:

  • Reduced lump-sum available
  • Transfer assets to your family
  • Guarantees you a steady monthly income for life
  • Retain your health and dental benefits

 

Drawbacks:

  • A portion is taxable upfront
  • Availability limited to age restrictions depending on your pension plan
  • Transferred money is locked in until attained retirement age
  • Your spouse may only receive a portion of your pension upon death (normally 66.67%)
  • In the event of premature death, any surplus goes back into the Pension Plan

 

Who Should Consider this Option?

  • People who are looking for a portion of guaranteed income
  • People who need to retain their benefits
  • Those who want transfer assets to their children

Disclaimer: The information contained herein is for ON residents only and does not constitute an offer to sell or solicit sales in any other Canadian or foreign jurisdictions.