Option 2 - Commuted Value of your Pension

The commuted value of your retirement benefit is the estimated amount of money you would have to put aside today, to grow with investment earnings, in order to provide a future benefit like your pension. A portion of the fund transfers are usually locked in, and must be invested in a vehicle that ensures they are used for retirement.

Features:

A certain portion of these funds may be removed in cash; however, there are huge tax consequences upon withdrawal.

Benefits:

  • Access to lump-sum
  • Control investment options
  • Transfer assets to your family

 

Drawbacks:

  • Substantial portion taxable upfront
  • Availability limited to age restrictions depending on your pension plan
  • Transferred money is locked in until attained retirement age
  • Investments are subject to market volatility
  • May lose health and dental benefits

 

Who Should Consider this Option?

  • Single people with a critical illness or health issues
  • People with large debt that need immediate access to cash
  • People that want to control their assets

 

For Option 3

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.