Retirement approaches faster than you think!

Retirement is one of the most significant milestones of your life, and effective planning can ensure you make a smooth transition from the working world to what can be some of your most enjoyable years. It’s never too early to speak to a Client Service Advisor about your options for retirement - here are some key things to consider.

2 years before retirement

• Review any savings, investments and retirement accounts, like your RRSP and TFSA, and calculate your retirement income, which includes CPP, OAP and, of course, your PSPP pension. You may also be eligible for the Guaranteed Income Supplement (GIS). Using these can help you develop a post-retirement budget.
• Pay down as much debt as possible and particularly look at reducing or paying off your mortgage in its entirety, if feasible.
• What does your retirement lifestyle look like? You may wish to downsize, or even relocate, so begin exploring these different options. This is also a great time to identify new opportunities your retirement can provide, such as travel and volunteering.
• Assess your potential insurance needs and whether you may have any coverage through your employer. Did you know that PSPP members have access to post-retirement benefits, including optional cost effective out of country insurance? ‘My Retirement Planner’, also available in e-services, can help you understand your sources of expected retirement income before and after tax as well as compare your current expenses to your expected expenses in retirement.
• For any questions or decisions regarding tax or property arrangements in retirement, consider consulting a lawyer about potential impacts before moving ahead.

1 year before retirement

• Decide when to begin taking CPP payments (before your turn 65 or after).
• Gain an understanding of your RRSP (and other accounts, e.g. the Registered Retirement Income Fund) withdrawal rules when receiving your pension.
• Review and finalize your retirement budget. Be sure to take into account any unexpected costs which may arise, as well as priority spending changes - like travelling - and inflation.
• Check your eligibility for insured medical benefits through the PSPP. For information on this, please review the ‘Insured Benefits in Retirement for Members of the PSPP’ booklet, available on the OPB website.
• You may wish to set a tentative retirement date. Consider how long you wish to keep working and how this date will affect your PSPP pension - for instance, if you are retiring early, or at normal retirement age (i.e., 65). Remember, you must begin receiving your PSPP pension by December of the year you turn 71.
• Don’t forget to sign up for one of our Retirement Planning Advisory Workshops through e-services or book a 1-on-1 with one of our Client Service Advisors.

6 months before retirement

• You should apply to start your pension 3 to 6 months ahead of the day you plan to retire. You can initiate your retirement online in e-services, but you should let your employer know that you have initiated the retirement process as well.
• Consider whether you are planning to receive government benefits and application timelines for applying for CPP and OAS, and GIS (if you qualify). You should also review your investments to align with your retirement needs.
• OPB deposits pension payments on the 22nd of each month. To minimize the gap between when you stop receiving your employment earnings and receive your first pension deposit, choose a retirement date as close as possible to the end of the month.
• Last but not least: celebrate! Retirement is a crucial life event, so take some time to reflect on accomplishments throughout your career as you settle into this new and exciting phase.

“As retirement draws near, it’s important to ensure you’re financially prepared. We’re here to help you make a smooth transition, so don’t forget to book a one-on-one session with one of our Client Service Advisors so we can explore your options.” – Matthew Siwiec, Client Service Advisor