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Thread: Leaving company - what to do with pension

  1. #1
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    Default Leaving company - what to do with pension

    I have a considerable amount of pension that I've accumulated over the years at my current job.

    I've never left a company before with a pension and nobody at work seems to know what my options are.

    Cashing it out doesn't seem wise and I'm sure it's the same tax hit as withdrawal from an RRSP.

    Can I transfer to an existing RRSP? Any sort of advice will be appreciated.

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    your company/pension plan will provide you with some options.

    I believe mine was to
    - keep it in the existing pension plan (pay fees)
    - move to a LIRA (can put in a mutual fund or just throw it all in an ETF)
    - move to a LIRA and keep it in the same pension company (select a new plan etc)

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    Locked in account / LIRA / LIRSP works. No biggie. Your pension manager will give you info.

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    Sounds like it just moves to a different locked in fund. I was reading that you can transfer it to a locked in rsp, im assuming you can't use a portion of this to count as RRSP contributions for the year?

    Trying to think of tax savings here haha

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    Your pension contributions have already counted against your rsp historically.

    So no, transferring it does not count as another contribution.
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    Don't overthink it. The company administering your work pension plan can transfer it in-kind to one of your personal locked-in retirement accounts

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    Quote Originally Posted by jabjab View Post
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    I have a considerable amount of pension that I've accumulated over the years at my current job.

    I've never left a company before with a pension and nobody at work seems to know what my options are.

    Cashing it out doesn't seem wise and I'm sure it's the same tax hit as withdrawal from an RRSP.

    Can I transfer to an existing RRSP? Any sort of advice will be appreciated.
    Unless you know someone that has pulled the same move in your company before and give you advice, you just have to deal with HR/Pension admin to go over your options.

    If you can just straight transfer into RRSP, that would be the most flexible/best option. If keeping it LIRA is the only choice then it is what it is.

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    Its probrably in a LIRA RSP.
    You can transfer it out. It has to go into another LIRA RSP. That is the instrument. You have to set that up first with who you want to invest with.
    Example. Set up a LIRA RSP account at the Bank. Transfer the money in. Then from that you can decide what you want to do with it. eg. Mutual fund, ETF, or stocks.

    If your investments are with a bank,advisor etc. Speak with them. They should be falling over helping you do this.

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    It's probably in SunLife or an equivalent. Move it out by talking to your financial provider (rbc direct investment, etc)

    Usually a $250 fee from SunLife to move out. Have rbc cover your fee given they're realizing the gain of your portfolio. Should be an easy negotiation.

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    .... Edit.....

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    I'm a CFP and can probably give you some advice if you need it. Feel free to PM me.

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    Quote Originally Posted by mr2mike View Post
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    It's probably in SunLife or an equivalent. Move it out by talking to your financial provider (rbc direct investment, etc)

    Usually a $250 fee from SunLife to move out. Have rbc cover your fee given they're realizing the gain of your portfolio. Should be an easy negotiation.
    This - move it to a LIRA with your financial institution, where you can control it with your other investments. Have them cover the transfer fee. You can't transfer out of a LIRA the same way as an RRSP, believe you cannot access the LIRA til after age 50 in Alberta (55 elsewhere).

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    What's the point of moving it to your bank vs. keeping it at SunLife for example? You can control the investments in SunLife and the portfolio mix.
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    Quote Originally Posted by flipstah View Post
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    What's the point of moving it to your bank vs. keeping it at SunLife for example? You can control the investments in SunLife and the portfolio mix.
    Way more options at a bank. You have access to the entire market vs Sunlife where they either keep you on your old employer’s plan with only limited funds to choose from, or go to sun life’s generic plan which also has limited options.

    If you go LIRA with a bank you have a wide range of flexibility…anything from yolo with shroom stocks or keep it conservative with Vanguard or iseries etfs

    Plus sun life fees are pretty high. I think they wanted $14 a month to stay in my old employer’s plan. I chose bank LIRA myself

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    Yeah, I personally was able to access more investment options at lower fees at my bank vs sunlife. It also allowed me to consolidate my accounts to one provider and one advisor, which saves me time and hassle.

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    I moved my pension to a LIRA with questrade. Unlimited freedom in what I want to do with it, operates no different then a RRSP besides not being able to access the money until 50.
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    Quote Originally Posted by flipstah View Post
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    What's the point of moving it to your bank vs. keeping it at SunLife for example? You can control the investments in SunLife and the portfolio mix.
    SunLife will charge very high fees if you keep it with them. The MERs are ridiculous as well.

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