DBP – Keep the Pension or Take the Commuted Value

Keep the Pension

  • Guaranteed Income for Life - You cannot outlive your income, and by law your spouse or common law partner is entitled to the survivor benefit, unless waived
  • Indexed to Inflation – If indexed your pension will help with the rising cost of living
  • Medical and Dental Benefits – Depending on your plan you could be entitled to additional benefits

Take the Lump Sum

  • Withdrawals – Upon converting to a LIF annual payments are received, subject to the maximum limit governed by pension legislation
  • Control – You have control over the investment decisions
  • Estate Planning – Beneficiaries can be named

Important considerations: Tax implications and your personal situation