October 2, 2014
By Sheryl Smolkin
For most of your working life you’ve saved for retirement. But as that date nears, your focus shifts to using your savings to pay for life after work.
If you belong to an employer-sponsored defined-benefit (DB) or defined-contribution (DC) registered pension plan, your savings are locked in by law until retirement.
If yours is a DB plan, on retirement you will be entitled to an annual pension based on the plan formula, your income at retirement and your years of service. You can retire up to 10 years earlier than the plan’s normal retirement date (i.e., as early as age 55), but your benefits will typically be reduced if you start collecting your pension prematurely. READ MORE