Retirement - Individual Pension Plan
At retirement you will have a choice of retirement vehicles. The choices are a monthly pension from the plan, an annuity, a Life Income Fund (LIF), or a Life Retirement Income Fund (LRIF). The Voluntary Funding is not recommended if transferring to a LIRA, LIF or LRIF.
If you decide to purchase an annuity or draw a pension from the Plan you may make the full Voluntary Funding. When purchasing an annuity your financial advisor can help you obtain a market comparison and choose the insurer. The plan will transfer funds to the life insurance company to purchase the annuity.
Annuities can be either single life, covering the life of the plan member only or, if married at date of retirement, a joint & survivor (J&S), with payments generally reducing on the death of the member. The J&S option often includes a minimum guaranteed period of 5 year and subsequent payments to the surviving spouse in full or reduced by a percentage selected at the time of retirement.
Reprinted with permission from Gordon B. Lang
President & Chief Executive Officer
Gordon B. Lang & Associates Inc.
http://www.gblinc.ca/