Severance & Early Retirement

The offering of severance and early retirement packages in both the public and private sectors appears to continue its upward trend. Every day, hundreds of Canadians are offered packages, with and without warning. What if it happens to you or someone you know?
Depending on the circumstances, the receipt of a severance package or early retirement offer can be a blessing or a curse. It’s even more difficult when the individual is faced with the difficult decisions that need to be made to ensure financial security for themselves and their family both short and long-term.

If you’ve decided to accept the package, you will likely want to place the maximum allowable amount within a locked-in RRSP, where it will be sheltered from tax and does not count towards your personal RRSP room.

In the case of company pension plans, your Canfin Financial Advisor can advise you if it is prudent to take the commuted lump sum value of your pension package, rather than monthly pension income, and the impact that these decisions will have on your retirement nest egg and estate.

In the short-term, your Advisor can assist you in developing an income plan to ensure you and your family can meet your living expenses until you are comfortably back in the workforce. Alternatively, if you decide that it’s time for you to start your retirement life, he or she can help you in converting pension and severance monies as well as existing RRSP and non-RRSP assets into retirement income assets.

Your Canfin Financial Advisor has the knowledge and experience to guide individuals or employee groups through this difficult and sometimes confusing major life change. He or she can discuss with you. in simple terms, exactly what your options are and how to minimize the tax and maximize the benefit the severance or early retirement package brings.