Leaving a job can be an emotional and often stressful time. During your transition from one job to another, or into semi- or full-time retirement, there are many financial decisions to be made. Many of these decisions can have expensive tax consequences, so being prepared with the right advice on how to proceed is priceless.
Over the last 19 months since the pandemic began, many Canadians have found themselves out of work, back at work, and then out of work again. Some of these have been temporary layoffs, and others more permanent. Many people have taken this uncertain time to make the leap into retirement with open arms (not one of which I have encountered have regretted this decision!).
You may have one or more registered or non-registered savings plans through your workplace when you leave. It’s important that you understand how these plans work, what your options are when leaving a job, and how it can affect your taxes in the short term, and your long-term plans. Every plan is different, as is every client, so you need personally tailored advice on how to act when you are faced with these financial decisions.
One of my mutual fund partners has a great resource for answering all sorts of questions regarding pension plans, retirement accounts, stock options, employment insurance, and more. If you or someone you know is going through this phase of life, I would encourage you to read the information in the attached Snapshots link.
I have helped many people review their options and advise on how to proceed with their financial plan when it comes to these workplace financial decisions. For my existing clients, I am a phone call or email away.