A reduced pension: think about it
Did you receive the Your Options statement and have to confirm the date on which payment of your pension will begin?
Since you asked to receive your pension right away, it will be reduced. Before you confirm your choice, we suggest you think about it carefully.
Your pension will be reduced by 0.5% for each month between the time you ask for it and the time you could receive an unreduced pension.
Does your situation make it impossible for you to wait for your unreduced pension? Verify whether you can postpone its payment by a few months. The longer you wait to receive your pension, the higher its amount will be.
Example
At age 55, Mary has just applied for her retirement pension. Its amount will be reduced, because she will be entitledto an unreduced pension of $30 000 at age 61 only. If she postpones payment of her pension by a few months, here are the financial gains she will obtain:
| | Age 55
(64% of the pension) | 57 years and 4 months
(78% of the pension) | Age 61
(100% of the pension) |
|---|
| Number of months preceding payment of the unreduced pension | 72 months | 44 months | – |
| Reduction of the pension in percentage | 36%
(72 months x 0.5%) | 22%
(44 months x 0.5%) | – |
| Annual reduction of the pension in dollars | $10 800
($30 000 x 36%) | $6600
($30 000 x 22%) | – |
| Annual pension | $19 200 | $23 400 | $30 000 |
|---|
For more information on financial planning for retirement, see the following web pages.
Did you make a decision?
Please complete the Your Options statement and return it to us.
If you are already receiving your pension and would like to postpone its payment, please contact us as soon as possible. Please note that if you already received amounts, you must repay them to us.