Are you a member of a public-sector pension plan? The plan could allow you to retire sooner than expected, but not at any price.
The number of years you have accrued is one of the factors used to determine the age at which you can start receiving an unreduced retirement pension under your plan. For example, for the Government and Public Employees Retirement Plan (RREGOP), you must have 35 years of service.
Would you like to retire before the time you become eligible for an unreduced pension? You could therefore be entitled to a reduced pension. But be careful: although you may be tempted to leave the labour market sooner than expected, you must think it through before making a decision. Think about it: you could be retired for over 30 years. For many people, a reduced pension means receiving several thousands of dollars less each year, for the rest of their lives. That is why it is very important to think about the consequences that such a decision could have on your future.
Do not hesitate to obtain advice from a financial planner on choosing the right time to apply for your pension. With a financial planner, you can discuss your savings, your retirement projects and your personal situation. Moreover, in My Account, you will find a Statement of Participation under your plan, which contains a wealth of information that is necessary for you to make a decision. It provides various scenarios: depending on your different life events, you will know how much the pension you could receive will be.
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