TORONTO, ONTARIO — (Marketwire) — 02/12/12 — As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito-s new book .
Tip Number 23:
Have other retirement income options in addition to your company pension plan
In today-s uncertain economy, even employer pension plans do not guarantee retirement security. Workplace pensions rarely provide all the income you will need in retirement. Having a clear picture of how much income your pension will provide will help you determine how much additional personal savings you will need to fill any gap between your anticipated retirement lifestyle expenses and your pension plan income. There are a few factors to consider to avoid under-saving for retirement, including:
Tip Number 24:
Choose wisely with your Defined Benefit pension plan
If you leave your employer before your retirement date, you may have a decision to make regarding the money you-ve accumulated in your defined benefit (DB) pension plan. With a DB plan, you may be given the choice between receiving a lifetime monthly pension or taking a one-time lump sum and investing it yourself. It is important to make the right choice – this decision is likely irrevocable. So, ask yourself: would you rather have a guaranteed amount of income during retirement or would you prefer to assume full responsibility for investing your money? There are several questions to consider:
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