Ep.009: Here’s What To Do With Your Pension

Summary

In this episode of the Millennial Money Canada podcast, hosts Guillaume Girard and Sam Lichtman discuss the various options available for company pension plans when leaving an employer or entering retirement. They explore the differences between defined benefit and defined contribution plans, the process of commuting a pension, and strategies for managing LIRA and RRSPs. The conversation also covers tax planning, the pension income credit, and the potential to unlock LIRA for home purchases. Additionally, they delve into income-splitting strategies and withdrawal plans to optimize tax efficiency in retirement.

Chapters

00:00 Introduction to Pension Options

02:41 Understanding Defined Contribution Plans

05:38 Exploring Defined Benefit Plans

08:11 Commuting a Defined Benefit Pension

10:51 Tax Implications of Commuting

13:31 Strategies for Managing LIRA in Retirement

16:31 Income Splitting and Tax Planning

18:27 Converting LIRA and RRSP for Withdrawals

27:41 Understanding LIF and RIF Withdrawal Rules

30:05 Strategic Planning for Retirement Income

34:06 Tax Implications of Retirement Withdrawals

38:28 Pension Income Credit and Its Benefits

41:11 Exploring Copycat Annuities

44:09 Unlocking LIRA for Home Purchases

47:40 Pension Income Splitting Strategies

51:22 Withdrawal Plan Options at Retirement

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Podcast YouTube Channel:
https://www.youtube.com/@MillennialMoneyCanadaPodcast
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Guillaume on LinkedIn: https://www.linkedin.com/in/guillaume-girard-cfa-cmt-cfp-08487170/
Sam on LinkedIn: https://www.linkedin.com/in/sam-lichtman/

Keywords

Pension plans, retirement, defined benefit, defined contribution, LIRA, RRSP, tax planning, income splitting, pension income credit, home buyers plan