Marie came for help preparing her retirement ...and to commute (personalize) her pension. As we spoke together she told me that women in her family didn't live so long. She felt her clock ticking away! With a husband surviving cancer she wanted to ensure the value of her PENSION would remain safely with her FAMILY ... ie. not stay in the pension plan for trustees and other members. She had worked hard to build her pension: family should gain the ultimate benefit of residual remaining at her death.
Marie's story presents us with the question: “Who do you love more – pension trustees and other colleagues ...or your very own family?” Marie’s response was clear -- she loves her children and grandchildren -- and wants to preserve her pension value for them!
We easily moved the "commuted value" of Marie's pension into a personalized pension plan. This gave Marie tremendous flexibility to achieve her personal goals and wishes with this money. She doubled her pension income for travel, gifts, and enjoying life experiences. She has also been able to cover health expenses and personal comfort.
Some people want to retire in their 50s or 60s and then build a new "retirement career" after a period of leisure or travel. Commuting a pension can help you design a personalized Life-Plan, with or without a further career or part-time work in your retirement.
Health and Family Concerns?
Marie's situation was vitally important because health-factors suggested she retire ten years early ...and so she did! All has gone well. Years have now passed. Marie is now the longest-lived woman of her family. Would she have remained this healthy and happy if she'd stayed in the office lifestyle to age 65?
Pension-Magic at Death?
Marie's plan was always to ensure that her pension residue will go to the children and grandchildren. She and her husband live happily - despite some health issues along the way. If Marie dies first, she's arranged that her husband will have full access for his own needs. When both have passed on, their children & family are named as beneficiaries to receive the entire remaining value (noting some tax on the estate).
Personalizing your pension
Some pensions restrict your choices. Some people facing retirement shouldn't commute even if a pension allows it. For more guidance to help you consider these vital pension options see chapter 1 of my book, A Lifetime of Wealth -- And How Not To Lose It.
Look to your own future. How do you foresee your lifestyle? ...your financial preparation and flexibility to enjoy life on your own terms? What values are most important for you? What would you want to preserve and share -- while living and beyond that -- for your family and dear ones? You've heard a bit of Marie's story here today, so consider if personalizing your pension would align with your own retirement lifestyle and estate planning.Adapted from chapter 1, Pension Decisions in .... "A Lifetime Of Wealth – And How Not To Lose It" (Amazon/Kindle) Brian Weatherdon, MA CFP CLU CPCA CRC MDRT 905-637-3500 x. 223. Brian@SovereignWealth.ca (Pension discussions benefit by including your spouse or key partner and family, tax-advisor, and investment counsel to confirm mandates for the secure management of a personalized pension account that may have to last you through 30, 40, 50 years of retirement. Also review on this website "Life Income Mandates" and related blogs on the lifelong security of investing for your lifestyle, health, and family estate.)