As we get closer to retirement, we often start to wonder when we should start to withdraw from sources of income like pensions. Depending on your situation and your other retirement savings, like RRSPs, when you start will be different from someone else. What you want to do with your pension money may also influence your decision. For instance, if you’re in good health and in a financially sound situation, then you can afford to wait longer and let the money grow. If you don’t think you’ll get the full benefit from it due to poor health, then considering a lump-sum cash payment may be the better decision. Or, if you want to use it to leave money to your children, then you’ll want to consider how you can do it to reduce your tax rate. Whatever you decide, keep in mind that there are ways to lessen your tax burden, so speaking to a professional first can help you with your estate planning.

“Once you begin taking your pension, in the majority of cases, you can’t stop the process — and that makes the timing crucial.”

Read more: https://www.bnnbloomberg.ca/when-is-the-best-time-to-take-your-pension-1.1139290