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GET ANSWERS TO YOUR QUESTIONS

Is Commuted Value Right For You?

All right, you’re going to retire this year.

Is the commuted value right for you?

By that I mean, is your personality suitable to invest this large pension settlement?

Here’s a story.

A new client told me that she is new to investing. She is nervous about putting her commuted value into an investment fund. She would prefer a guaranteed investment like a GIC. That raises a problem. Because, if we assume that she wants to maximize her income in retirement, she must expose some of her money to Investments.

Analysis shows that you will need a 4.5% rate of return in order for your commuted value to pay out the same as your Company pension to age 95.

Here’s the issue: GICS and guaranteed Investments do not pay 4.5%.

So she will need to be comfortable with an investment account.

Are you comfortable with an investment fund?

You need your commuted value invested in at least 60% equity in order to match the Company pension payout to age 95.

In a nutshell, the commuted value may be right for you if you are prepared to own an investment fund.

The team at Pension Solutions Canada is here to help. We specialize in helping individuals prepare for retirement and understand their pension options. Let us assess and review your income streams in retirement and help you with retirement planning. Our services are no cost to you.

Call us at 1-888-554-6661.

Bruce Youngblud, CFP, CIM
Pension Solutions Canada
1-888-554-6661

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Book a no-obligation 15-minute virtual Zoom consultation call with a Certified Financial Planner who can answer your pension and retirement questions and inform you of all your options!

Retiring in 2022? Book A 15-Minute Virtual Consultation!

Chat with Certified Financial Planner, Bruce Youngblud. He can advise you on pensions, retirement planning, tax planning and estate planning. Plan to enjoy retirement to the fullest!

Retiring in 2022? Book A 15-Minute Virtual Consultation!

Chat with Certified Financial Planner, Bruce Youngblud. He can advise you on pensions, retirement planning, tax planning and estate planning. Plan to enjoy retirement to the fullest!