Making the Most of Your Retirement planning with Anthony D’Amico, CFP®

This article highlights some of the most common questions and issues that retired members discuss with our Advisors.

“Some of the most common topics raised by our members are with regards to tax planning, or when to start their CPP, and some even ask us for help on when to start drawing on other investments they have,” shares Anthony D’Amico one of our Client Service Advisors.

Pension income splitting, returning to work, and estate planning are notable topics where members in retirement look to us to help them better understand their unique situation. Read on to learn about how our Advisors can assist you. Learn more below, including how to contact our Advisors.

Pension income splitting

Pension income splitting is an important topic for our members, one that our Advisors are often asked about, as it is part of a retirement strategy that can help optimize personal income tax planning. “The important information for our members to know is that the pension they receive from the PSPP is eligible for pension income splitting,” says D’Amico.

“We talk to members about things they need to consider so they are well informed of their options. When it comes to the actual tax reporting and final decisions on income splitting, we encourage them to speak with their accountant or tax advisor because it is important to know their entire financial picture.” OPB Advisors can provide the necessary information to members about pension income splitting, and can also guide members through using our online Retirement Planner’s pension income splitting tool to determine the most beneficial split for the member and their spouse. There is important information about the PSPP and tax rules that we can help our retired members understand – this is why it is important to contact our Advisors before you make any final decisions about your PSPP benefit.

Receiving your PSPP benefit while still working

There are members who would like to continue working after they retire, either in their current role or with a different employer. If you decide to continue working and receive your PSPP pension at the same time, and you are working for an employer who contributes to the PSPP – then there are a number of options available to you that an OPB Advisor can help you navigate. This information is important to know and understand in advance of making your decision, because it can impact your pension income.

“Returning to work, or continuing to work, comes up as a question in pre-retirement planning, as well as in post-retirement sessions,” adds D’Amico. “This is an area where it’s important to speak with us as we are well-versed in interpreting provisions of the PSPP, and therefore are in the best position to help members and retired members understand how this decision may impact their pension. There are a variety of scenarios related to working after retirement that have different outcomes, for example, does the new position require you to contribute to the PSPP? what earnings level is the threshold so the pension isn’t impacted? should I stop my pension and continue contributing? These are all the points we can help you with. If retirees return to work with a non-PSPP employer, there would be no impact on the PSPP pension.

Estate planning

While estate planning is a popular topic of discussion for retirees, D’Amico notes that the Client Service Advisors can only assist members by sharing information about the pension entitlements and how pension funds may be distributed to beneficiaries and/or their estate, and the implications of various alternatives. While we can help our members understand the options and how each can impact various decisions, before proceeding with the creation of an estate plan, clients are always encouraged to seek out legal advice and direction from a trusted tax advisor for more detailed guidance.

Contacting OPB Advisors

Our Advisors are available to help you either in- person or over the phone. To book a one-on-one session, log in to your e-services account at the top-right corner of our website and select ‘Book My 1-on-1’.