The Financial and Consumer Affairs Authority (FCAA) wants to remind people that not all pension plans are the same and some have a lump sum payment upon retirement, while others provide a monthly pension cheque for life.
“It’s important for people to know if they will receive a lump sum payment or a monthly payment as that can effect retirement budgeting,” FCAA Pension Division Director Leah Fichter said. “It can be stressful figuring out how to make a lump sum last the rest of your life. There are resources available to help you.”
If you receive a lump sum payment, here are some points to consider:
Talk to a financial planner, a professional who has experience managing people’s retirement money.
Make a budget, so you can track your income and expenses.
Talk to your current pension plan administrator, so you can learn about retirement planning resources.
For more information on retirement planning, visit www.fcaa.gov.sk.ca/lumpsum.
